Now and then: The Evolution of Loan Quality for U.S. Banks
7 Pages Posted: 11 Mar 2005
Although loan quality in the U.S. banking industry deteriorated in recent years, a comparison with the banking crisis of the late 1980s and early 1990s suggests that the industry is in a far better position today than it was a decade ago. The percentage of troubled loans is lower, loan quality problems are confined principally to large-bank commercial and industrial lending, and credit weakness is concentrated in a small number of borrower industries.
Keywords: loan quality, commercial banks
JEL Classification: G21
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