U.S. and Eighth District Banks Face Challenges but End 2024 on Solid Footing
The U.S. commercial banking industry posted satisfactory earnings, asset quality and capital in 2024, with several indicators up from their 2023 levels. Banks in Eighth District states also fared well, with most states posting solid earnings that are on par with or surpass national averages, and asset quality and capital measures that exceeded those of their national peers.
3/27/2025 Read more about U.S. and Eighth District Banks Face Challenges but End 2024 on Solid FootingWhat's New
All itemsfrom What's NewCybersecurity, regulation, and technology and funding costs are community bankers’ most pressing current concerns, according to an annual survey that covers the economic, regulatory, competitive and operational challenges they face.
One of the pressures the banking industry has faced over the past two years is the rising cost of deposits. Rates paid on deposits have risen sharply since March 2022, when the Federal Reserve began tightening monetary policy. Although last week’s reduction in the Fed’s target range for the federal funds rate promises relief, there are factors other than monetary policy at play.
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.
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