The Federal Reserve's low interest rate policy is designed to encourage businesses and consumers to spend and borrow -- and based on banks' growing loan books, it may be working. However, should investors be wary of a potential situation in which banks, driven by the desire for higher-yielding assets, start making loans that may not be paid back?
Fool.com financial analyst Matt Koppenheffer explains what jumped out at him while reviewing fourth-quarter reports across the banking sector, ranging from the biggest -- like Bank of America (BAC -0.01%) -- to well-known regionals such as US Bancorp (USB 1.81%). For all the details, be sure to check out the video below.