Press release

The California Bankers Association and Beacon Economics Release California Banking Intelligence Report
Report reviews the recent bank lending environment and stock market volatility

Sacramento, Calif. — The California Bankers Association (CBA) and Beacon Economics have released a seventh California banking report that examines important issues currently affecting California’s banks and the overall economy. The report is authored by Chris Thornberg, Ph.D., founding partner, and Jordan Levine, economist and director of economic research, at Beacon Economics. This report analyzes bank lending data for California through the second quarter of 2015, and offers observations on the recent volatility observed in the stock market. Among the report’s key findings:

  • Lending volumes in 2015 are estimated to reach record highs across a number of categories.
  • Loans in California reached nearly $900 million in the second quarter of 2015*.
  • California banks increased lending by 7.7% from the second quarter of 2014 to the second quarter of 2015. Banks throughout the country increased lending by 6.3%.
  • Loans to individuals (including credit cards) were up by 30%.
  • The delinquency rate dipped below 2% to start 2015.
  • Despite the volatility the stock market recently experienced, Beacon rules out any talk of bubble.

*For the first time, this report utilizes a unique database constructed by Beacon that provides a more holistic picture of lending in the state that includes both loans made by California-based banks, as well as an estimate of lending in the state made by financial institutions not headquartered in California. Beacon estimates that the volume of lending in California is much higher than the $400 billion reported by the FDIC on California-based banks, as the nation’s five largest banks are technically  based outside of California and not included in the FDIC’s analysis, but have a significant portion of their operations based in California.

Please contact Beth Mills to schedule a media interview with the study authors.

About the California Bankers Association (CBA)

Established 124 years ago, the California Bankers Association (CBA) is one of the largest state banking trade associations in the country. CBA leads the way in developing relevant legislative and educational solutions to some of California’s more pressing financial and banking issues, including financial empowerment, identity theft, financial privacy, and financial elder abuse. CBA’s membership includes the majority of California’s commercial, industrial and community banks and savings associations. For more information, visit 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.

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