Wednesday, February 26, 2014

ABA Statement on FDIC's Fourth Quarter Bank Earnings Report

ABA's Chief Economist, James Chessen commented on the FDIC's fourth quarter bank earnings report, which was released today.

"Broad-based improvement in loan demand and increased asset quality were the driving forces behind a strong 2013 for America’s banking industry," Chessen said. "Banks posted solid earnings by cutting costs and working aggressively to make the loans that help drive our economy forward."

Bank lending continued to increase 2013.

"Bank lending increased nearly across the board last year – from automobile loans and credit cards to a sharp increase in multifamily home loans. An improving economy has reduced the risks associated with lending, and banks have adjusted their underwriting standards accordingly," said Chessen. "There is no shortage of competition to meet the needs of today’s borrowers. With the Federal Reserve continuing to hold interest rates low, now is the perfect time for businesses to borrow and expand their operations."

Read the full press release here.

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