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DirectoryNarratives
State of the Financial Services Industry
Regulatory Amendments
Holocaust Claims Processing Office
Commitment to Lower Manhattan
Fighting Terrorism
Criminal Investigations Bureau
Enforcement Actions
Consumer Outreach
Banking Development Districts
Banking Board Membership
Office Locations

 

State of the Financial Services Industry

Economic growth was markedly uneven during 2002, with the economy failing to generate sustained upward momentum. Labor markets were soft, and capital investment by the corporate sector remained subdued. Bankruptcy filings by publicly traded companies reached record levels. At times, heightened uncertainty permeated financial markets amid concerns about recession, terrorism, and corporate government malfeasance.

Notwithstanding the weak economic climate, consumption expenditures and consumer confidence remained relatively strong throughout the year. Record low mortgage rates fueled the residential mortgage market for both originations and re-financings. In turn, consumer spending was buoyed by cash-outs in the refinancing process.

With lingering weakness in many sectors of the national economy, credit quality tends to decline. In addition to deterioration in asset quality, banks tend to experience reductions in corporate loan demand and net income. However, due to strong capital, liquidity, and reserve positions, New York State's supervised banks were relatively well positioned to weather an economic trough.

 

Supervised Banking Institutions Regulatory
Safety and Soundness Ratings

Bar Graph showing that Supervised Institutions received largely satisfactory regulatory safety and soundness ratings for the years 2000, 2001, and 2002.

Supervisory ratings reflect the examiner's summary assessment of a bank's overall financial condition, performance, risk profile, and risk management.

Source: Federal Reserve Bank's National Information Center database.
2002 Data include FDIC-insured commercial banks and savings banks, plus foreign branches and agencies, for exams commenced and completed in 2002, recorded as of 1/31/2003.

 

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 State of the Financial Services Industry | 2002 Regulatory Amendments | Holocaust Claims Processing Office Accomplishments | Department's Continued Commitment to Lower Manhattan | Fighting Terrorism | Criminal Investigations Bureau Accomplishments | Enforcement Actions | Consumer Outreach | Banking Development Districts | Banking Board Membership | Office Locations


NYS Banking Department