Chairman’s Opening Statement
Fourth Quarter 2015 Quarterly Banking Profile
February 23, 2016
Good morning, and welcome to our release of fourth quarter 2015 results
for FDIC-insured institutions.
Overall, the banking industry had another positive quarter. Revenue and
earnings were higher than a year ago, loan growth improved, fewer
institutions were unprofitable, and the number of banks on the “Problem
List” fell below 200 for the first time in more than 7 years. Full-year 2015
results for the industry also showed continued improvement.
Community banks reported another positive quarter and continued
improvement over 2015. Their earnings rose from a year ago, and their
revenue growth, loan growth and net interest margins were appreciably
higher than the overall industry.
However, the operating environment for banks remains challenging.
Interest rates have been exceptionally low for an extended period, and we
are seeing signs of growing interest rate risk and credit risk.
Fourth Quarter 2015 Quarterly Banking Profile
February 23, 2016
Good morning, and welcome to our release of fourth quarter 2015 results
for FDIC-insured institutions.
Overall, the banking industry had another positive quarter. Revenue and
earnings were higher than a year ago, loan growth improved, fewer
institutions were unprofitable, and the number of banks on the “Problem
List” fell below 200 for the first time in more than 7 years. Full-year 2015
results for the industry also showed continued improvement.
Community banks reported another positive quarter and continued
improvement over 2015. Their earnings rose from a year ago, and their
revenue growth, loan growth and net interest margins were appreciably
higher than the overall industry.
However, the operating environment for banks remains challenging.
Interest rates have been exceptionally low for an extended period, and we
are seeing signs of growing interest rate risk and credit risk.
Fourth Quarter 2015 Quarterly Banking Profile Chairman’s Opening Statement
2
Recently, domestic and international market developments have led to
heightened concerns about the U.S. economic outlook and prospects for
the banking industry. Thus far, the performance of banks has not been
impacted materially. However, the full effect of lower energy and other
commodity prices remains to be seen.
Going forward, the banking industry is better-positioned to withstand less-
favorable economic and financial market conditions. Regulatory agencies
have been working together to ensure that banks have strong balance
sheets. Capital ratios are significantly higher than they were prior to the
crisis, and the percentage of highly liquid assets also is significantly higher.
As events unfold, banks must remain vigilant as they manage interest rate
risk, credit risk, and evolving market conditions. These challenges will
continue to be a focus of ongoing supervisory attention.
2
Recently, domestic and international market developments have led to
heightened concerns about the U.S. economic outlook and prospects for
the banking industry. Thus far, the performance of banks has not been
impacted materially. However, the full effect of lower energy and other
commodity prices remains to be seen.
Going forward, the banking industry is better-positioned to withstand less-
favorable economic and financial market conditions. Regulatory agencies
have been working together to ensure that banks have strong balance
sheets. Capital ratios are significantly higher than they were prior to the
crisis, and the percentage of highly liquid assets also is significantly higher.
As events unfold, banks must remain vigilant as they manage interest rate
risk, credit risk, and evolving market conditions. These challenges will
continue to be a focus of ongoing supervisory attention.