ABA Statement on FDIC's Quarterly Banking Profile

“The FDIC's latest Quarterly Banking Profile shows that the banking sector remains strong amid continued economic uncertainty. In the final three months of last year, the industry continued to support consumers as well as businesses big and small through near-record annual loan growth.

“Credit quality remained above pre-pandemic levels despite elevated inflation, but given the uncertain economic outlook banks have been prudently shoring up loan-loss provisions. Banks have increased provisioning by more than 87% to $20.7 billion over the past two quarters as they continue to monitor delinquency trends.

“As FDIC Chairman Gruenberg noted, the banking industry remains well-capitalized and highly liquid. That strength will help the nation’s banks weather potential headwinds as inflation and geopolitical risk persist.”