The market seems to share that outlook, perhaps one reason why bank stock valuations have been improving. Ongoing consolidation in the industry also plays a role, and we have seen a recent wave of merger announcements among the largest bank holding companies. Based on what I hear from community bankers, mergers and acquisitions among big institutions have historically created opportunities for community banks.
I wouldn't be a bank regulator if I neglected to mention that bank capital ratios remain very strong. Nearly 99 percent of banks in the United States are well-capitalized, which is a higher proportion than we have ever seen.