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Department and Industry Response to 9/11 Attacks
150th Anniversary and Celebration
Employee Recognition / Awards
State of the Financial Industry
Holocaust Claims Processing Office
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"On the Road"
Predatory Lending
Governor Pataki Addresses the Banking Department Staff
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Commercial Banks

The year 2001 tested the strength and resiliency of the State's commercial banking sector.  A global economic downturn, major business bankruptcies, debt defaults and the precarious state of the Argentine economy were some of the more challenging issues faced by the industry.  The adverse environment was further exacerbated by the events of September 11th.

Asset quality indicators evidenced deterioration as credit weaknesses in the marketplace intensified especially during the latter part of the year. The percentage of noncurrent loans and chargeoffs to total loans climbed to 1.82% and .81%, respectively.  The sector's total asset base dropped 3% to $874 billion due, in large part, to the merger of The Chase Manhattan Bank and Morgan Guaranty Trust Company in the fourth quarter.  The combination of these banks created a global giant with nearly $540 billion in assets, the second largest in the United States.  Profit performance also suffered as pressures on net interest income coupled with rising loan loss provisions and a slower rate of growth in non-interest income negatively impacted the bottom line.  The industry's return on average assets was .71%, a 39 basis point drop from the previous year.

Despite these difficulties, the industry remains fundamentally sound and well positioned to move forward as economic improvement takes place.  Capital adequacy, as measured by risk-based capital guidelines, remained healthy with the tier one capital ratio increasing slightly to 9.89%.  In addition to strong capital levels, loan loss reserves have been strengthened, and prudent risk management practices have helped avoid some of the concentration pitfalls of the past. 

Besides the Chase/Morgan merger, other noteworthy transactions included the acquisition of Fiduciary Trust Company International of New York by Franklin Resources, Inc. and First Union Corporation acquiring control of Offitbank, a large wealth management trust company.  (Wachovia Corporation merged with and into First Union Corporation under the name Wachovia Corporation.)

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 Tribute to World Trade Center Victims | Department and Industry Response to 9/11 Attacks | 150th Anniversary Celebration | Employee Awards | State of the Financial Services Industry | Holocaust Claims Processing Office Accomplishments | Criminal Investigations Bureau Accomplishments | Enforcement Actions | Banking Development Districts | The Superintendent's Travels Throughout New York State | Predatory Lending | Governor Pataki's Address to the New York State Banking Department Staff | Banking Board Membership | Schedules | Office Locations


NYS Banking Department