Large banks are getting back on their feet - earning profits and getting rid of bad debt.
The FDIC's most recent Quarterly Banking Profile provides an updated snapshot of bank health. The biggest banks are coming along, while smaller banks are a bit behind.
Large banks can leverage their size. They borrow government funds cheaply, and pick and choose where to pursue revenue. Smaller banks don't have as many options, and they rely heavily on business loans.
Of the 118 bank failures this year, all have been small banks. That's not too surprising since there are more small banks than large banks, but it illustrates a difficult environment for small banks. This doesn't mean you need to shun small banks - be mindful of who you bank with and make sure your money is FDIC insured.
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