WASHINGTON - Individual banks may suffer in an economic downturn, but the industry as a whole is strong enough to weather even a major economic disruption, Federal Reserve Chairman Alan Greenspan told Congress on Thursday.

Responding to questions after his semi-annual economic report to the Senate Banking Committee, Mr. Greenspan said he believes that some loans, made under lenient credit standards during the height of the current nine-year economic expansion, will go bad in the event of a recession.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.