By the mid-1800s, Boston had developed into a major banking center whose capital financed the state's burgeoning industries. Today banking remains an important sector of the state's economy, employing over 55,000 workers in 1999. As of 2002, Massachusetts had 217 insured banks, with assets of $193.5 billion.
More than 300 state chartered savings banks, trust companies, co-operative banks, credit unions, and over 4,000 other financial service providers, including mortgage lenders and brokers, debt collection agencies, foreign transmittal agencies, check cashers, and credit grantors, are examined by the state Division of Banks, within the Office of Consumer Affairs and Business Regulation. The division administers the state's banking laws and oversees bank and financial institution practices and policies.
In 2002, due to low mortgage rates, borrowers secured long-term fixed-rate loans at lower prices. During that year, median long-term assets to earning assets increased to 35%, the highest rate in a decade. Eighty-two percent of insured institutions headquartered in Massachusetts are savings institutions, and residential real estate loans make up 65% of the average loan portfolio. The Massachusetts economy continued to struggle in 2002, and there was an increase in residential and commercial real estate (CRE) delinquencies at some institutions.