BIS Review 75/2008  3  •  Third, although the balance sheets of US firms are considerably stronger than they were before the last credit cycle downturn, the significantly tightened credit standards and financing conditions will cause firms that have very low profitability and are highly-leveraged to face debt-servicing problems.
In 2004, community banks once again demonstrated their value to their shareholders and the marketplace, earning $ billion for a respectable return on assets (ROA) of 1.21 percent and a return on shareholders’ equity of 11.72 percent. Community banks also reported strong results in the first quarter of 2005.