Banks diverted earnings to reserves for "newly risky loans as the coronavirus tanked credit health and plunged the U.S. into a recession."
The fintech company began its bid for a banking charter over two years ago.
The formula for banks' lower profits: three rate cuts by the Fed, yield-curve inversions, and higher salary and benefits costs.
The company said the approval was “a significant step in [its] application process for a national bank charter.”
It was the first quarterly decline in net income since late 2018 but the industry generated nearly $100 billion in new loans.
Boosted by a 6% gain in net interest income, the industry's strong Q1 performance followed a record year in 2018.
Despite a strong fourth quarter, many U.S. bankers foresee a worsening economy and higher funding costs.
Quarterly U.S. bank earnings show balance sheets getting stronger; business loans still performing well.
The SEC, IRS, and FDIC were among the agencies cited for not adequately addressing security vulnerabilities.
“The current economic expansion is the second longest on record, and the nation’s banks are stronger as a result," said the FDIC chair.
Here are three reasons why your company's chances of getting a loan may be better than they have been in awhile.
A judge rules the accounting firm failed to meet professional standards in its audits of Colonial's mortgage warehouse lending division.
