Economy

US Banking Industry: Solid Year, Risks Ahead

Banks face risks from securities losses, margin loans, and private equity in 2026.
US Banking Industry: Solid Year, Risks Ahead
The Wall Street sign is seen outside the New York Stock Exchange on April 11, 2025. Michael M. Santiago/Getty Images
Panos Mourdoukoutas
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The U.S. banking industry posted a solid performance in 2025, supported by higher loan and deposit growth, rising net interest income, and lower charge-offs, according to recent data. However, challenges such as unrealized securities losses and increasing exposure to margin loans and private equity remain areas of concern heading into 2026.

Financial results for banks and savings institutions improved during the year, based on a Federal Deposit Insurance Corporation (FDIC) survey of 4,379 institutions released in November.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”