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ABA: The American Bankers Association
Statement

ABA Statement on FDIC’s Third Quarter Bank Earnings Report

“The FDIC’s report shows that our nation’s banks remain key drivers of the U.S. economy with nearly $100 billion in new loans generated in the third quarter. Noticeable growth in consumer and real estate lending helped offset uncertainty that slowed growth in business loan demand. Over the last year, however, commercial and industrial loan growth remained strong at more than 6 percent. With higher wages and more jobs, the consumer sector remained healthy with continued solid spending powering economic growth.

“The Federal Reserve’s recent interest rate cuts have had an impact on both banks and their customers. While the lower rates have tempered net interest margins, they have supported an increase in total consumer loans, particularly in durable goods and autos. The lower rates have helped sustain the pace of commercial real estate and multi-family lending, and have stimulated an increase in mortgage refinances, which boosted non-interest income.

“Asset quality remains strong as net charge-offs and non-performing loans held at or near cycle lows. Deposits continued to flow to banks as consumers entrust them with safeguarding their savings. Nearly all banks – 99.7 percent – are well capitalized, with the industry adding $104 billion to its $2.1 trillion capital base over the year.

“America’s vibrant banking sector is well-positioned to help sustain economic growth this year and next.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $21.1 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $17 trillion in deposits and extend nearly $11 trillion in loans.

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Mike Townsend

(202) 663-5471

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