Commercial bank loan capacity grows as finances improve.

CPAs should find it easier for clients and companies to obtain new bank loans. An analysis of Federal Reserve Bank call report data for the first quarter of 1993 by Veribanc, Inc., found loan capacity on the rise as the financial condition of the nation's commercial banks registered further improvement.

While the number of commercial banks dropped from 12,699 to 11,867 in the past two years, total assets grew by 3.9% to $3.72 trillion from $3.58 trillion. Deposits were modestly higher at $2.83 trillion versus $2.8 trillion in 1991. Problem loans declined from $104 billion in 1991 to $76.4 billion, and problem loans in excess of loan loss reserves dropped to $19.8 billion from $46 billion in 1991. Net income for the year ended March 31, 1993, reached $35.5 billion, up from $15.5 billion in the comparable period two years earlier.

As a result of the strong financial performance, bank loan capacity is improving. According to Veribanc, 11,473 of the nation's banks currently are in the "well-capitalized" category. Of these, 11,022 could increase lending by 10% or more and still remain in that category. Nationwide, banks could offer $778.2 billion in new loans, or 36.1% of the industry's total loans, without downgrading the well-capitalized status of any individual bank.