FDIC – Risk Review, 2025

The main theme of the report is the assessment of risks affecting the banking industry, with a particular focus on risks that may impact community banks.

Key findings include stable economic conditions in 2024 with economic growth exceeding expectations, a slowdown in labor market growth, and a decrease in inflation, although it remained elevated. There was an inversion of the yield curve and high interest rates throughout most of the year. The banking industry showed resilience, with net income above pre-pandemic levels, stable liquidity, and increased capital. There was deterioration in some loan portfolios and continued high levels of unrealized losses on securities.