U.S. and Eighth District Banks Face Challenges but Are on Solid Footing
Despite some headwinds going into 2024, the U.S. commercial banking industry posted satisfactory earnings, asset quality and capital in 2023, although several indicators were down from their 2022 levels.
3/25/2024 Read more about U.S. and Eighth District Banks Face Challenges but Are on Solid FootingWhat's New
All itemsfrom What's NewMaintaining the spread between interest income and interest expense, deposit growth, liquidity, and cybersecurity lead a list of community bankers’ top concerns, according to an annual survey. Several of these concerns spiked from their rankings in the 2022 survey, an indicator of how much the banking environment has changed over the last year.
U.S. banking supervisors are asking the nation’s bankers to evaluate the liquidity risk inherent in their banks’ current operations and to have contingency funding plans in place and ready to execute in the event of liquidity shortfalls.1 That guidance is spelled out in an updated interagency policy statement issued in July.
The U.S. banking system is sound and resilient, with strong capital and liquidity, according to the latest report on bank supervision and regulation released in May by the Federal Reserve Board of Governors. Nevertheless, bank supervisors are actively monitoring risks associated with credit, liquidity and interest rates. These risks have risen in 2023 because of prevailing economic conditions and uncertainty about the future path of the economy.
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All itemsfromTake Five is a popular video series featuring St. Louis Fed senior business economist Kathleen Navin. In each video, Navin provides a quick, concise synopsis of the most recent meeting of the Federal Open Market Committee (FOMC).