Summary
Regulators are casting a jaundiced eye on the allowance for loan losses, commercial real estate concentrations and nonperforming assets. Competition is heating up for a shrinking pool of deposits. Liquidity problems will multiply as sources of funding dry up. We have a lot of well-run institutions, said Mark Moylan, deputy regional FDIC director in Kansas City. A lot of institutions are doing very well. He said it is important they bridge the gap between what the press is saying and how strong their institutions are in order to raise the comfort level of customers. Overall, the big picture of the economy isn't good. The housing glut will keep residential construction depressed for some time, said Bill Emmons, supervisory officer and economist at the Federal Reserve Bank of St. Louis. Emmons estimates national house prices could fall 20%, but could fall as much as 40 to 50% in bubble markets.
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Extract
Is There an Optimist in the Room?
An optimist was hard to find among speakers at the Missouri Independent Bankers Association's 31st Annual Convention & Exhibition last month. Missouri and the nation are in or near recession, the MIBA members were told. Regulators are casting a jaundiced eye on the allowance for loan lo...
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