Moody's Investors Service said the journey back to "normal" levels of asset quality for U.S. banks will be "slow and uneven" for the next year to 18 months.
In its latest quarterly report on the credit fundamentals of the U.S. banking system, Moody's Wednesday said U.S.-rated bank asset quality issues are past their peak.
But it said chargeoffs and nonperforming assets remain near historic highs.
Craig Emrick, a Moody's senior vice president, said banks have recognized about 60% of the aggregate loan chargeoffs that they'll realize from 2008 to 2011.