Washington ? The U.S. banking system weathered the last recession well and is now in good shape to provide the credit needed for an expanding economy, Federal Reserve Chairman Alan Greenspan said Wednesday.

Greenspan told a convention of the Independent Community Bankers of America that problems banks experienced from bad loans in the last recession were mild compared to previous downturns. As a result, he said, the banking industry was “strong and well-positioned to meet customer needs for credit and other financial services.”

Speaking by satellite to the bankers’ meeting in San Diego, Greenspan said that during the past three years the banking industry had enjoyed an extended string of high and often record quarterly earnings and a robust growth in assets.