November 27, 2013 - The Federal Deposit Insurance Corp (FDIC) has said that the banking industry in the US continued its slow recovery in the third quarter of the year.

It said that "positive trends" were evident when compiling the latest financial reports from the industry, with overall growth witnessed in commercial and consumer lending.

The FDIC went on to note that banks in the US have reduced the amount of troubled loans on their books.

Growth was also recorded in the balances of most categories of loans, including auto, credit card, and commercial and industrial loans.

This meant that overall loan balances increased by $69.7 billion, or nearly one per cent above the previous quarter, to $7.80 trillion.

The FDIC said six institutions failed in the third quarter and 23 have failed this year, including one that failed after the fourth quarter started.

However, the number of "problem banks" dropped for the tenth consecutive quarter, indicating a clear sense of recovery within the industry.