In 2002, Oklahoma had 280 insured banks, of which 181 were state-chartered. That same year, the state's insured banks had assets totaling $54.7 billion. The failure of the Penn Square Bank in 1982 led to a series of mergers between strong institutions and distressed smaller ones and a 1983 revision of the state's banking laws which allowed for the restructuring of the industry. Concurrently, Oklahoma's banks were adversely affected by proposals to ease restrictions on reciprocal interstate banking in Missouri and Texas.
The State Banking Department has the responsibility for supervising all state-chartered banks, savings and loan associations, credit unions, and trust companies.
Although the residential and commercial real estate sectors in Oklahoma were weak in 2002, insured banks in the state performed well. Banks reported their highest nine-month average return on assets (ROA) ratio (the measure of earnings in relation to all resources) in a decade as of September 2002.
Oklahoma is the only state in the Southwest region in which the per capita bankruptcy rate was higher than the national average. As of 2002, consumer debt and bankruptcy filings trended upward, which was projected to weaken banks' credit quality. Due to significant levels of government support, agricultural banks reported strong conditions in 2002.