Now and then: the evolution of loan quality for U.S. banks

Metli, Christopher; Stiroh, Kevin J.

Journal Article

Now and then: the evolution of loan quality for U.S. banks

Abstract: 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: Commercial loans; Bank loans; Credit;