FINAL
Martin J. Gruenberg
Chairman
Federal Deposit Insurance Corporation
to the
Institute of International Bankers
Annual Washington Conference
Washington, D.C.
March 7, 2016
Martin J. Gruenberg
Chairman
Federal Deposit Insurance Corporation
to the
Institute of International Bankers
Annual Washington Conference
Washington, D.C.
March 7, 2016
2
Introduction
Good afternoon and thank you for the opportunity to take part in this conference today.
I would like to talk with you about two issues.
The first is the ongoing recovery of the U.S. banking industry. In many ways, the industry has
staged an impressive turnaround from the most severe financial crisis and economic downturn in
the United States since the 1930s, but the industry still faces a range of challenges.
Second, of particular relevance to the IIB, I would like to discuss the substantial progress that has
been made to foster cross-border cooperation among the major jurisdictions of the world on the
resolution of systemically important financial institutions.
Recent Performance of U.S. Banks
I want to begin by discussing the financial condition of U.S. banks as well as some of the key
supervisory challenges going forward.
The FDIC recently released financial results for U.S. banks through the end of 2015 in our
Quarterly Banking Profile. These results continue to reflect the recovery in U.S. bank earnings
and balance sheets during the current economic expansion, now in its seventh year.
FDIC-insured institutions earned nearly $164 billion in 2015, a new record. Almost two-thirds
of all institutions reported higher earnings in 2015 than in 2014. Noncurrent loans fell for the
twenty-third consecutive quarter and now stand at the lowest level since the recession began in
late 2007.
Introduction
Good afternoon and thank you for the opportunity to take part in this conference today.
I would like to talk with you about two issues.
The first is the ongoing recovery of the U.S. banking industry. In many ways, the industry has
staged an impressive turnaround from the most severe financial crisis and economic downturn in
the United States since the 1930s, but the industry still faces a range of challenges.
Second, of particular relevance to the IIB, I would like to discuss the substantial progress that has
been made to foster cross-border cooperation among the major jurisdictions of the world on the
resolution of systemically important financial institutions.
Recent Performance of U.S. Banks
I want to begin by discussing the financial condition of U.S. banks as well as some of the key
supervisory challenges going forward.
The FDIC recently released financial results for U.S. banks through the end of 2015 in our
Quarterly Banking Profile. These results continue to reflect the recovery in U.S. bank earnings
and balance sheets during the current economic expansion, now in its seventh year.
FDIC-insured institutions earned nearly $164 billion in 2015, a new record. Almost two-thirds
of all institutions reported higher earnings in 2015 than in 2014. Noncurrent loans fell for the
twenty-third consecutive quarter and now stand at the lowest level since the recession began in
late 2007.