Financial Developments of Bank Holding Companies in 1981

A 1981 financial development review of 391 holding companies for three size classes reveals that: 1) net income before securities transactions increases to $9.2 billion; 2) net interest income increases to $3.9 billion; 3) return on average assets remains at 0.66%; 4) aggregate consolidated assets continue to grow slowly at 9.8%; 5) shorter asset and liability maturities are the trend; 6) deposit growth is weak; 7) composite ratio of equity to risk assets decrease to 6.22%; and 8) composite ratio of net loan losses to average loans decreases to 0.36% despite the increase in nonperforming assets.