The banking system remains sound and resilient. Most banks continue to report capital and liquidity levels above applicable regulatory requirements. Aggregate commercial bank deposit levels stabilized in the second half of 2023 and slightly increased in early 2024. Asset quality remains sound overall. However, delinquency rates for some commercial real estate loans and some consumer loans have increased to above pre-pandemic levels. Banks have boosted the allowance for credit losses in anticipation of further deterioration in asset quality. The Federal Reserve is focused on improving the speed, force, and agility of ... (full story)