Bank Analysis School April 2025

TABLE OF CONTENTS

INTRODUCTION................................................................................................................................ 1

SECTION 1: Executive Summary....................................................................................................... 3

Key Risks to Banks................................................................................................................................... 3 SECTION 2: Overview of Conditions and Banking Performance........................................................ 5 Economic and Financial Markets Conditions......................................................................................... 5 Banking Performance Overview........................................................................................................... 10 SECTION 3: Market Risks.................................................................................................................15 Liquidity, Deposits, and Funding.......................................................................................................... 15 Net Interest Margins and Interest Rate Risk......................................................................................... 21 SECTION 4: Credit Risks...................................................................................................................27 Commercial Real Estate........................................................................................................................ 27 Residential Real Estate.......................................................................................................................... 33 Consumer. ............................................................................................................................................. 37 Agriculture............................................................................................................................................. 41 Small Business...................................................................................................................................... 46 Corporate Debt and Leveraged Lending.............................................................................................. 49 Nonbanks. ............................................................................................................................................. 53 Energy.................................................................................................................................................... 56 SECTION 5: Operational and Cyber Risks ........................................................................................59

SECTION 6: Climate-Related Financial Risks....................................................................................61

SECTION 7: Crypto-Asset Risks .......................................................................................................67

ACRONYMS AND ABBREVIATIONS....................................................................................................69

GLOSSARY OF TERMS......................................................................................................................71

2024 Risk Review | i