Quarterly Banking Profile Essay

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Navigating through Sept 30, 2013 Quarterly Banking Profile was a bit overwhelming at first. So I first watched Chairman Gruenberg talk through long 25 minute press conference in which he summarizing the third quarterly banking profile (he was dry he needs some enthusiasm in his voice) and then looked at the Sept 30, 2013 Quarterly Banking Profile. There where many different trends that I noticed. The first was that there has been a steady decline in federally insured banking institutions. There were 6,891 federally insured banking institutions, down from 6,940 at the end of the second quarter and down from 7,141 as of September 30, 2012. There were 8,680 banking institutions as recently as December 31, 2006, meaning that there are 1,789 fewer banks in the U.S. than there were a little less than seven years ago. Insured industries earned $1.5 billion less that they did in 2012 third-quarter. They earned $36 billion of net income. Increase of litigation expense of $4 billion was one of the main reasons for the decline in net income. A drop of net operating revenue because of reduction of mortgage lending activities also contributing to decline in net income. Fewer institutions reported quarterly losses. Increase in medium and long-term interest rates that occurred in the second quarter resulted in net operating revenue to $6.1 billion less than it was last year mainly. Lower loan loss provisions resulted in the largest positive contribution to the year over year changing quarterly earnings. In the third-quarter 2012 Banks set aside 8.8 billion dollars more to reserves than Banks set aside in the latest quarter. The $5.8 billion to reserves in third quarter was the smallest quarterly totaling in the last 14 years. Noncurrent loan balances has declined 46% in the last 14 quarters however they still are above pre-crisis level. In the third quarter loan balances

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