Financial institutions in the United States have stronger capital positions than they did in 2008, and the Federal Reserve continues to regularly test the ability of the largest institutions to withstand economic stress (chart 14). Bank deposits have grown substantially, thereby allowing many banks to reduce their dependence on more volatile wholesale funding (chart 15).
And, although loan balances have increased in recent months, they remain well below their peak levels, leaving banks with  BIS central bankers’ speeches  5  substantial liquidity. Measures of credit stress such as reductions in nonperforming assets, delinquencies, and charge-off rates show steady improvement in credit quality. As a result, most banks are now actively seeking loan growth to improve their profitability.