WASHINGTON–The Federal Reserve has released a new report revealing the financial firms it oversees now hold just under $43-trillion in assets as of mid-year.
In all, the Supervision and Regulation Report says the Fed has under its supervision more than 4,800 banks and banking firms, as well as six insurance companies and four commercial savings and loan holding companies, which together hold $900 billion in assets.
According to the Fed, assets being held in what are called U.S. global systemically important banks (G-SIBs) represent the largest slice of assets overseen by the Fed: $14.3 trillion or one-third of the total. Similar to credit unions and the share of assets held by larger CUs, those eight G-SIBs represent just 0.17% of firms the Fed supervises.
Also similar to credit unions, the Fed reported that at mid-year it supervised 3,671 “community banking organizations” (CBOs, defined as holding assets of less than $10 billion), for 75.8% of all firms it oversees. Despite their numbers, those institutions hold just $2.9 trillion in total assets, or about 6.7% of the total.
The Fed said the 677 state member banks within the CBOs comprise the second largest group of organizations it oversees and collectively hold $600 billion in assets (or 1.4% of the total).
Report Highlights
Among the other highlights from the mid-year Fed report:
- Data show improvements in the banking system’s balance sheet since the onset of the coronavirus crisis in the spring of 2020. But there are issues of concern, including low net interest margins, and mediocre loan growth, which has contributed to low net interest income.
- Another concern: commercial real estate (CRE) loans deserve “continued monitoring as the result of shutdowns and social distancing measures that have strained commercial real estate properties, especially retail, office and hotel properties.”