Safe & Sound: America's Banks Remain Strong and Resilient

With 4,586 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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Overall Industry Remains Healthy and Strong

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.

Capital Levels (as of Q4 2023):

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 60 basis points above pre-pandemic levels (13.92% and 15.25%, respectively). The industry leverage ratio increased 16 basis points year-over-year to 9.14%. Total bank equity capital remains 9.6% higher than its pre-pandemic level.

Industry Capital Ratios Remain Strong

Source: FDIC

Liquidity (as of Q4 2023)

Aggregate loan-to-deposit ratios, one of the tools to measure bank liquidity, remain low at 65.03%, still 6.5 percentage points below pre-pandemic levels.

Loan to Deposit Ratio Remains Historically Low

Source: FDIC

Deposit Levels (as of June 2024):

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.

Deposits Back to Long Run Trend

Source: Federal Reserve

Deposits Held at Domestic Banks