Saturday, June 25, 2022

FDIC: Banking environment improved last year

The FDIC released its annual risk review late last week, and pointed out the banking environment improved in 2021 as the economy recovered from a period of economic hardship the year prior.

The agency noted financial market conditions “were generally supportive of the economy and banking industry” throughout 2021, though they began to deteriorate with the onset of the Russian invasion of Ukraine in February 2022.

Banks reported “substantially higher net income in 2021, primarily due to lower credit loss provisions,” the agency said, with banks reporting a significant 89.7% increase year-over-year. Meanwhile, net interest margin declined, despite a slight increase in net interest income and strong asset growth, the FDIC noted.

Click here to view the FDIC’s annual risk review