Banking Conditions in the Recessions of 1990 and 2001
Going into the 2001 recession, FDIC-insured commercial banks’ real asset and loan growth was much stronger than in the late 1980s and early 1990. Both statistics dipped into negative territory when the 1990 recession began. Asset growth stayed there for five quarters, and loan growth was still negative after two years. In the 2001 recession, however, these statistics fell below zero only in 2002:IQ, largely because of a seasonal drop in balances due from depository institutions and a decline in commercial loans, residential mortgage loans, and consumer loans other than credit cards. Both growth numbers recovered in 2002:IIQ.
Suggested citation: "Banking Conditions in the Recessions of 1990 and 2002," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-09, pp. 16-17, 09.01.2002.