With 4,614 banks of all sizes, the U.S. has one of the deepest and most diverse banking systems in the world. The wide range of banks serving communities across the country continues to be a source of strength for our economy. Each bank has its own unique approach, capabilities, and strengths. Together, America's banks provide the fuel that drives the U.S. economy forward.
Banks of All Sizes Make Loans That Drive America's Economy
Total Deposits by Bank Type
The U.S. banking marketplace is also highly competitive with community, midsize, regional and global systemically important banks (GSIBs)all vying for individual and business customers. See the many ways banks of all sizes serve their customers and communities.
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Rob Nichols Emphasizes Strength of America's Banks
As the Federal Deposit Insurance Corporation’s latest Quarterly Banking Profile shows, the banking sector remains strong amid continued economic uncertainty. Below are charts that detail key indicators of the industry’s health.Overall Industry Remains Healthy and Strong
Capital levels, one of the best ways to gauge bank health, are strong, with the Tier 1 risk-based capital ratio and Total risk-based capital ratio both more than 70 basis points above pre-pandemic levels (14.02% and 15.36%, respectively). The industry leverage ratio increased for the sixth consecutive quarter in Q3 2023, reaching 9.26% (+40 basis points year-over-year), and total bank equity capital remains 6.2% higher than its pre-pandemic level.
Capital Levels (as of Q3):
Source: FDICIndustry Capital Ratios Remain Strong
Aggregate loan-to-deposit ratios, one of the tools to measure bank liquidity, remain low at 65.39%, still 6.1 percentage points below pre-pandemic levels.
Liquidity (as of Q3)
Source: FDICLoan to Deposit Ratio Remains Historically Low
Banks saw a record flood of deposits during the pandemic as Americans moved their funds to the safety of banks. It’s not surprising that in the post pandemic period, deposits have returned to more normal levels. These charts show the history and recent trends in deposit flows.Deposit Levels (as of Jan 2024):
Source: FDICDeposits Back to Long Run Trend
Source: FDICDeposits Held at Domestic Banks
