Credit card loans held by commercial banks have increased by 56 percent. At the end of the first quarter of 1996, unused credit card commitments at commercial banks totaled more than a trillion dollars. As this chart on personal bankruptcy shows, quarterly filings for personal bankruptcies have increased substantially since mid-1994, and the 253,000 filings in the first quarter of 1996 exceeded the record for quarterly filings of 234,000 set in 1992. Note the increases in both bankruptcy filings and charge-offs over the last year. This chart is not in the graph book, but a copy is included in your press package.
Banks serving farm communities have high concentrations of agricultural-related credits.
They therefore are exposed to the current adverse conditions in this sector. However, as a group, agricultural banks are well capitalized, with average equity to assets of 10.68 percent as compared to the industry average of 8.21 percent. While the level of noncurrent loans at farm banks has increased slightly beyond normal seasonal fluctuations, it remains less than 1 percent, which is low when viewed historically. We are concerned about these trends, however, and we are monitoring the agricultural sector and the condition of insured institutions in drought-plagued areas closely. Even with these dark spots and concerns, the picture for the commercial banking industry remained bright.