In a sign that instability is still working its way through the banking sector, the number of troubled banks and thrifts increased 20 percent in the most recent quarter, while the number of failed banks increased dramatically as well.
In a quarterly report on the health of the banking system, the Federal Deposit Insurance Corp. reported 305 problem banks and thrifts in the first quarter of 2009, up from 252 in the previous quarter and the most since 1994. The total assets held by problem institutions also increased, from $159 billion to $220 billion.
The FDIC did not name the problem banks, gathering its information from confidential reviews of their capital ratios, loan portfolios, and other indicators of financial health.
At the same time, the total number of banks under FDIC supervision decreased, with 50 merging with other banks and 21 failing outright.
The FDIC report also contained troubling news about the state of American business. Non-current loans increased $59.9 billion, or 25.5 percent, in the first quarter. The percentage of non-current loans among all outstanding loans is now 3.7 percent, the highest since 1991.
Troubles in the housing market accounted for 84 percent of the total increase in non-current loans, with non-current residential mortgage loans up $26.7 billion and non-current real estate construction loans up by $10.5 billion. According to the FDIC, all major loan categories experienced rising levels of non-current loans, and 58 percent of insured banks reporting increases in their non-current loans.
In a quarterly report on the health of the banking system, the Federal Deposit Insurance Corp. reported 305 problem banks and thrifts in the first quarter of 2009, up from 252 in the previous quarter and the most since 1994. The total assets held by problem institutions also increased, from $159 billion to $220 billion.
The FDIC did not name the problem banks, gathering its information from confidential reviews of their capital ratios, loan portfolios, and other indicators of financial health.
At the same time, the total number of banks under FDIC supervision decreased, with 50 merging with other banks and 21 failing outright.
The FDIC report also contained troubling news about the state of American business. Non-current loans increased $59.9 billion, or 25.5 percent, in the first quarter. The percentage of non-current loans among all outstanding loans is now 3.7 percent, the highest since 1991.
Troubles in the housing market accounted for 84 percent of the total increase in non-current loans, with non-current residential mortgage loans up $26.7 billion and non-current real estate construction loans up by $10.5 billion. According to the FDIC, all major loan categories experienced rising levels of non-current loans, and 58 percent of insured banks reporting increases in their non-current loans.
published May 28, 2009, 0 Comments
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