According to data from FIG Partners total loans at publicly traded banks with assets of less than $20bn rose 9.2 percent in the 4th quarter compared to the previous year; banks above $20bn in assets saw loan growth of 2.7 percent; there is a worry in the market that in order to keep up loan growth these banks are sacrificing credit quality; the pressure is also coming from new fintech entrants, causing community banks to not only compete with other banks for loans and deposits but digital firms as well; most banks feel credit quality is stable and the lessons from the recent financial crisis are still very much top of mind. Source.
