BANK HISTORICAL TRENDS
The Bank Historical Trends data is sourced fthrough the Federal Reserve Bank of St. Louis FRED economic data service. Data is generally reported from 1985 forward. Large commercial banks (Top 25) are graphed in red and small commercial banks (non-Top 25 and approximately <$105 billion in total assets) are graphed in blue. The data and graphs provided a longer term historical context of banking measures through various economic cycles since 1985.
(Source: Federal Reserve Bank St. Louis FRED)
SELECTED TRENDS IN KEY BALANCE SHEET ITEMS
LARGE AND SMALL COMMERCIAL BANKS
Cash Assets: Historically both Large Banks and Community Banks held quite constant levels of cash assets. This changed during and after the Great Recession. Cash assets increased during the Great Recession as banks built up liquidity during the crisis as this was paramount. Large bank cash assets appeared to reach a new level approximately 3X their historical levels. With the proposed and adopted Liquidity Coverage Ratio, large banks increased cash assets to approximately 5.5X their historical levels. And these cash assets are nearly all held at the Federal Reserve. Liquidity is now as important as capital within the banking industry. For community banks, cash assets jumped to 2X during the Great Recession. And, while most community banks do not need to comply with the new liquidity rules, they have elevated cash assets to nearly 3X their historical levels as best practice for liquidity management.