R. Alton Gilbert of the St. Louis Fed compares the condition of the banking industry during the 1990-91 recession vs. current conditions.
Examinations and capital requirements are the current pillars of bank supervision. Some people now want to draw on the markets for further assistance in controlling risk.
The diagnosis on banks is comforting, despite a few weak spots here and there and an economy that's slowing down.
Those worried that recent banking consolidation will leave rural residents underserved might be surprised to learn how far large banks have cast their nets in pursuing the banking business of those outside urban areas.
To be effective, they need to act as quickly as possible.