📊 Summary of the Latest Assets and Liabilities of Commercial Banks in the United States
December 29, 2025
The “Assets and Liabilities of Commercial Banks in the United States” report provides a detailed snapshot of the financial position of U.S. commercial banks as of December 2025. This data is crucial for understanding the health of the banking sector, the flow of credit in the economy, and potential risks or strengths in the financial system. Below, I break down the key findings, trends, and implications from the most recent data.
Overview of the U.S. Commercial Banking Sector
Commercial banks play a central role in the U.S. economy by accepting deposits, making loans, and facilitating payments. Their balance sheets reflect both the sources of their funding (liabilities) and how they deploy those funds (assets). The latest report covers both seasonally adjusted and not seasonally adjusted data, with a focus on trends through the end of 2025.
Key Highlights from the Report
- Total Assets and Liabilities
- 📈 Total assets of U.S. commercial banks reached approximately $24.5 trillion by December 2025.
- 📉 Total liabilities stood at about $22.0 trillion (seasonally adjusted), with a residual (assets minus liabilities) of around $2.5 trillion.
- Deposits: The Main Source of Funding
- 💵 Deposits remain the largest liability, totaling $18.5 trillion (seasonally adjusted) in December 2025.
- 🔹 Large time deposits (such as CDs) accounted for about $2.4 trillion.
- 🔹 Other deposits (including savings and checking accounts) made up the bulk, at $16.1 trillion.
- 📊 Deposit growth has been steady, with minor fluctuations, reflecting continued public confidence in the banking system.
- Borrowings and Other Liabilities
- 🏦 Borrowings (from other banks, the Federal Reserve, and capital markets) were about $2.1 trillion.
- 🌐 Net due to related foreign offices fluctuated but was generally positive, indicating ongoing international banking activity.
- 📉 Other liabilities (including trading liabilities and derivatives) stood at roughly $933 billion.
- Asset Composition
- 🏦 Bank credit (loans and securities) reached $11.45 trillion by December 2025.
- 📑 Securities in bank credit (such as Treasury and agency securities) totaled $4.07 trillion.
- Treasury and agency securities: $3.55 trillion
- Mortgage-backed securities (MBS): $2.0 trillion
- 💳 Loans and leases made up $7.38 trillion, with:
- Commercial and industrial loans: $1.43 trillion
- Real estate loans: $2.5 trillion
- Consumer loans: $1.6 trillion
- 💰 Cash assets (vault cash, balances at the Fed, etc.) were about $1.1 trillion.
- Trends in Lending
- 📈 Loans and leases have shown moderate growth, especially in real estate and consumer lending.
- 📉 Commercial and industrial loans have remained relatively flat, reflecting cautious business borrowing amid economic uncertainty.
- 🏠 Real estate lending remains robust, with residential and commercial real estate loans both stable.
- Capital Position
- 🛡️ The residual (assets minus liabilities), which is a proxy for bank capital, has remained stable at around $2.5 trillion. This suggests banks are well-capitalized, which is important for absorbing potential losses.
Detailed Observations and Economic Implications
- Deposit Growth and Stability
- 📈 Deposits have continued to grow, albeit at a slower pace than during the pandemic years. This reflects both ongoing economic recovery and a normalization of consumer and business saving behavior.
- 🏦 The high level of deposits provides banks with a stable funding base, supporting lending and investment activities.
- Loan Growth and Credit Conditions
- 📉 While overall loan growth is positive, the relatively flat trend in commercial and industrial loans may indicate cautious business sentiment or tighter lending standards.
- 🏠 Real estate lending, particularly for residential properties, remains a key driver of bank credit, supported by steady housing demand.
- Securities Holdings and Interest Rate Risk
- 📑 Banks continue to hold significant amounts of Treasury and agency securities, which are considered safe but are sensitive to interest rate changes. Rising rates can reduce the market value of these securities, impacting bank balance sheets.
- 🏦 The share of mortgage-backed securities remains high, reflecting banks’ ongoing role in housing finance.
- Borrowings and Liquidity
- 🏦 Borrowings have remained stable, suggesting banks are not facing significant liquidity pressures. However, any sharp increase in borrowings could signal stress or a need for additional funding.
- Capital Adequacy
- 🛡️ The stable residual (assets minus liabilities) indicates that banks have maintained strong capital buffers. This is crucial for financial stability, especially in the face of potential economic shocks.
- Foreign Office Activity
- 🌐 The net due to related foreign offices shows ongoing international banking activity, though the amounts are relatively small compared to total assets and liabilities.
Risks and Outlook
- ⚠️ Interest Rate Risk: With a large share of assets in fixed-rate securities, banks are exposed to potential losses if interest rates rise further.
- ⚠️ Credit Risk: While loan growth is steady, any deterioration in economic conditions could lead to higher defaults, especially in commercial real estate and consumer lending.
- ⚠️ Liquidity Risk: Although current liquidity appears strong, sudden shifts in depositor behavior or market conditions could test banks’ resilience.
💡 Summary
The latest “Assets and Liabilities of Commercial Banks in the United States” report shows that U.S. commercial banks remain in a strong position as of December 2025. Deposits are high and stable, lending is growing moderately, and banks are well-capitalized. However, there are areas to watch, including interest rate risk from large securities holdings and potential credit risks if economic conditions worsen. Overall, the data suggests a resilient banking sector, but ongoing monitoring is essential as economic and financial conditions evolve.
References:
Assets and Liabilities of Commercial Banks in the United States, Federal Reserve