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One Type of Loan Causes Small Banks to Fail


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Summary of a GAO Report on Bank Failures

Published in: Economy & Finance, Business
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One Type of Loan Causes Small Banks to Fail

  1. 1. Brian S. McDaniel
  2. 2.  Largely Related to Nonperforming R/E Loans  Commercial Real Estate (CRE)  Acquisition, Development, and Construction (ADC)  Highlight the Impact of Impairment Accounting and Loan Loss Provisioning
  3. 3. Credit Losses and Charge-offs Contributed to Failures Fair Value Accounting Did Not Contribute
  4. 4. Current Accounting Practices May Have Delayed Reporting
  5. 5. FDIC Attracted Bidders at Least Cost to the Deposit Insurance Fund Health Banks Balked
  6. 6.  Market Concentration Did Not Shift  8 of 188 metropolitan areas met criteria  5 of 68 rural communities met criteria
  7. 7.    y=177495625&hash=41aba5859000585f21d068 0e6d8843f2