Recently, a lot of attention has been given to the rebound in commercial banking. After the collapse of the real estate markets at the beginning of the decade and the subsequent asset quality problems experienced by many banks, the industry is well capitalized and earning record profits.
Loan volume is increasing, bankers are active in markets that a few years ago were dominated by only a few, and the "credit crunch" is long over. In fact, the volume of syndicated loans completed in the third quarter of 1994 reached record levels ($203 billion), and the fourth quarter was nearly as active ($192 billion). The first quarter of 1995 saw only a slight decrease to $190 billion.