The performance of depository institutions will continue to improve in 1994. As the remnants of the problems of the 1980s are finally being resolved, the banking industry can focus on the future rather than the past.

The solid earnings of 1992 and 1993 that are likely to continue into 1994 have given the entire banking industry, and particularly its thrift segment, a window of opportunity to capitalize on favorable marketplace trends. This outlook often had to be set aside while restoring the capital base was the top priority for many institutions.

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