On This PageVol. 11, No. 3

Crosscurrents in 1986 bank performance
Last Updated: 05/04/87

U.S. banking registered lower profitability in 1986, as the industry withstood another year of heavy loan losses. Problem loans, meanwhile, halted their recent relative decline.

 

This somewhat disappointing news comes despite a fifth consecutive year of U.S. economic expansion and it fuels the arguments of those who suggest a long-term decline in U.S. banking. A closer look at the variety of performance across the industry, however, reveals a more complex picture.