Last year proved to be another banner year for the banking industry, continuing a trend that began in the early 1990’s. The condition of Ohio’s banking system remains very strong as well, reported the Ohio Department of Commerce’s Division of Financial Institutions today. Dave Thomas, Chief Examiner of Banks with the Division of Financial Institutions, provided an Industry Status Report during the Ohio Bankers Day Conference held at the Hyatt Regency in Columbus.

This year's conference was sponsored by the department's Division of Financial Institutions and the Office of the Comptroller of the Currency. More than 200 Ohio banking officials attended.

In considering the capital, asset quality, management, earnings and liquidity, Ohio's state and federally-chartered banks generally receive strong scores. In ranking the banks on a 1-5 scale with one being the strongest, Ohio's state-chartered banks were represented as follows:

56% -- "1" Rating (sound in most respects with minor deficiencies)

40% -- "2" Rating (considered stable and generally have only modest weaknesses)

2% -- "3" Rating (moderately severe to unsatisfactory weaknesses which require more than normal supervision)

1% -- "4" Rating (poor condition with prompt action necessary)

1% -- "5" Rating (extremely poor condition; without prompt action, failure is likely without immediate action)

Thomas said that the long string of strong profitable years has contributed greatly to the highly capitalized position of a majority of banks, and that strong capital positions remain a standard for Ohio banks.

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Under Director of Commerce Donna Owens, the Ohio Department of Commerce’s Division of Financial Institutions regulates Ohio’s state-chartered banks, savings and loans/savings banks, and credit unions. The Division also regulates securities, industrial compliance, fire codes, unclaimed funds, liquor, and real estate, among other industries.