Federal Reserve says Minnesota banks slowly getting stronger

The Federal Reserve Bank of Minneapolis says the health of Minnesota's banks is gradually improving as the industry recovers from the recession. A Fed official says profits are still not great but they're moving in the right direction. A new report on the year's second quarter also shows the number of bad loans is shrinking.

Author:: BMTN Staff
Publish date:: Aug 23, 2012

Minnesota banks are not exactly raking in profits yet but they're getting there. The Federal Reserve says in the second quarter profits were up slightly and the number of bad loans was down a little. The amount of money loaned by the state's banks was up compared to last year's second quarter, which had not happened in a few years.

Here's the Minneapolis Fed's overview of Minnesota banking conditions, with links to the other five states it serves. On the national level, those who read the Fed's tea leaves think more stimulus may be on the horizon given the sluggishness of the recovery.

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An executive with the Federal Reserve Bank of Minneapolis says profits and the quality of loans held by Minnesota banks are almost back to their historical averages. Those still hurting are mainly Twin Cities area banks that invested in commercial real estate in outer-ring suburbs.

In its forecast for the new year the Fed says agriculture and mining look strong in Minnesota but the housing construction market remains sluggish.

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