Perhaps to the contrary, as a result of market dynamics, both domestically and abroad, we can expect to see some loan losses and earnings pressures. Some weaknesses have already surfaced. For the most part, though, we continue to be spared the crisis events that can be so disruptive.
This “lull” in domestic financial problems has come at an opportune time, as U.S. and world financial systems adjust to the profound changes of the last decade. The number of insured commercial banks continues to decline — down 4 percent last year and by roughly one-third since the decade began.