The banking sector in the United States of America has been given account of their financial position for the first quarter of 2011. This hint was dropped by the federal Insurance Deposit Corporation.
It reported that the first quarter of this year marked a new beginning in the banking sector as the banks reported the highest margin of gains since the financial crises started. It reported that the net income earned by those banks stood at $29b.
This is about 60% more than what the banks have been earning. The corporation gave a growing picture of banking industry in US saying the rate of bank failures has minimised but complaints against some personalities are on the increase.
The corporation revealed there was a drop of the interest rate income which according to the corporation dropped to about 3% to what it was in the year 2010. The situation prevailed through out last year despite so much hype of economic recovery in the United States.
This also represents the first time since 1989 there was a quarterly decline in interest rate income. The corporation threw more light on the decline in interest rate income. It said that the six biggest banks are the most affected but it cuts across all the banks.