James Chessen, chief economist at the American Bankers Association, said it is “terrific” that banks are experiencing modest growth through revenue instead of reducing loan-loss reserves to shore up their balance sheets. [Financial ETFs Could Bank on Improved Loan Growth]
Specifically, loan sales increased 46% in the three months ended September. Additionally, other loan categories were broadly higher, along with 2.4% rise in auto loans. Bank loan balances hit a record $8.2 trillion in the third quarter, adding onto loan balance growth over the second quarter, which increased above $8 trillion, reports Ryan Tracy for the Wall Street Journal.
The number of problem banks with a greater risk of failure are also on the decline, diminishing to 329 from 354 over the second quarter. However, two banks failed in the third quarter.
SPDR S&P Bank ETF
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Max Chen contributed to this article.