California Bankers Association Releases Economic Impact Study Highlighting Statewide Economic Contributions of Banking Sector

Sacramento, Calif. — The California Bankers Association (CBA) has released an economic impact study by Beacon Economics that examines the critical role banks play in supporting California’s economy and the communities they serve. The study is authored by Chris Thornberg, Ph.D., founding partner, and Miriam Valdes, Ph.D., manager, policy and economic development at Beacon Economics.

The comprehensive study examines and identifies a number of direct economic impacts generated by banks, as well as the considerable contributions banks make to California’s economy through indirect effects. Key findings include:

• Commercial bank operational activity and its economic ripple effects contribute $118 billion in total economic output to California’s economy and support over 270,000 jobs across numerous sectors throughout the state

• The commercial banking sector is a source of well-paying jobs for thousands of Californians. The average annual wages in California’s commercial banking sector reached $141,000 in 2023, 61percent higher than the weighted overall state wages and 24 percent above the national average for commercial banking roles

• California’s banking sector is nearly evenly split between males and females in most occupations, including management positions

• Total fiscal impacts of commercial banking operations total more than $13.1 billion in tax revenue, including $5.4 billion in revenue to state and local government

• As of the fourth quarter of 2023, California commercial banks provided $1.21 trillion in total loans and leases, a figure that represents approximately 30 percent of the state’s GDP

• In 2022, California banks provided $34.7 billion in small business loans and $334 million in farm loans, representing 15 percent of all CRA-designated small business and farm loans made in the United States

• Besides CRA lending, California’s banks support community development through their involvement with CDFI fund programs. Commercial banks are among the largest providers of private capital to CDFI funds, ensuring that essential financial resources reach underserved communities.

“This study affirms the vital role banks play in fostering economic resilience and growth in California,” said Kevin Gould, President & CEO of the California Bankers Association. “From supporting small businesses to empowering communities, banks are integral to the prosperity of our state.

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About the California Bankers Association (CBA)

The California Bankers Association is one of the largest state banking trade associations. Our mission is to advocate for the California banking industry and support our members as they advance the financial success of their customers, communities, and the economy.

Bringing members together. Making our banks better.

www.calbankers.com.

About Beacon Economics, LLC

Beacon Economics, LLC is an independent economic research and consulting firm with offices in Los Angeles and the San Francisco Bay Area. The firm delivers economic analysis and data sites that help their clients make informed, strategic decisions about investment, growth, revenue, policy, and other critical economic and financial issues. Their nationally recognized forecasters were among the first to predict the collapse of the housing market and foretell the onset and depth of the economic downturn that followed. Core areas of expertise include economic and revenue forecasting, market and industry analysis, economic impact studies, economic policy analysis, and international trade analysis.