WBA reinforced the positive role banks play in driving Wisconsin’s economy by reaching out to the media on the topic of the latest FDIC quarterly numbers. WBA also highlighted that despite the strong numbers from FDIC, there is another side to the story. Wisconsin banks continue to face a variety of obstacles. Regulatory relief and tax reform would greatly assist banks in facing these challenges and allow banks to better serve Wisconsin’s communities.
The federal numbers show, for the second quarter in a row, lending grew in virtually every category. Wisconsin banks showed an overall lending increase of 5% over last year, growing to over $80 billion in loans. Non-current loans continued to decrease, dropping to $719 million, down 18.6% from last year. Deposits also grew 1.7% to over $87 billion.
Wisconsin banks continue to face a variety of obstacles, such as: the rising cost of strong capital levels and funding loans, a prolonged low interest rate environment, and growing challenges to banks’ efficiency due in part to regulatory burden. Compliance, technology, and regulatory burden are also factors in the current rate of merger activity seen in the banking industry.
A full copy of the WBA press release is available by clicking here.