Analysis of Current Situation, Problems, and Countermeasures of the US Banking Industry

Abstract

Nowadays, the US banking industry is confronting various challenges, including the procyclicality of bank lending, increased competition and failures, and the effects of the 2007/2008 financial crisis on large US banking. Moreover, the unanticipated global pandemic of COVID-19 undoubtedly added a burden to the banking industry. This paper unmasks the current situation of the banking industry and introduces several problems that the US banking industry is confronting and provides potential resolutions and recommendations regarding these problems by thoroughly synthesizing information from other literature reviews. By integrating information from diverse studies, it can accumulate different perspectives from various fields of expertise, which could further deepen this problem and encourage further investigation. Resolutions include adjusting the monitoring of the bank loan portfolios, using models to make predictions on the bank's assets, and disclosing the process of ERM. However, there are many more critical problems that the US banking industry is facing that are not covered in this paper; and other potential resolutions to the addressed problems are possible, thus, further research is recommended.