The Index of Banking Activity (IBA) Composite Index held steady in July, logging in at 57.5, barely changed from the June reading of 57.7. This flat reading—which follows a downturn in June, prompted by a spike in consumer interest rates—marked the smallest-ever monthly change for the Index in 2013.
Despite fluctuations over the last 12 months, the Index reflects overall year-on-year growth. The latest Composite Index reading is nearly 7 percent greater than the reading of 53.9 recorded in July 2012.
Source: American Banker and VantageScore Solutions, LLC
Compiled from surveys of executives at hundreds of financial institutions across the United States, the index is an industry bellwether that tracks 16 distinct business indicators, such as volume of deposits, loan applications, and loan delinquencies, and how they change month over month. Measurements of each of these components are combined into a single Composite Index, in which readings above 50 indicate business expansion, and those below 50 signify contraction. Find more information about the Index and its component measurements at AmericanBanker.com.