Bank lending is expanding briskly, and regulators are warning that asset-quality problems could be around the corner. So far, however, data collected from banks have not revealed any obvious problems, writes Michelle Clark Neely, an economist at the Federal Reserve Bank of St. Louis. She reviewed the data as of mid-March in this article, which is adapted from the April 1998 issue of Monetary Trends, the St. Louis Fed's newsletter.

U.S. banks have enjoyed a prolonged spurt of loan growth in this business cycle expansion.

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