The FDIC says that more than a tenth of banks in the United States are still at risk of failing even though the economy is showing improvement. Out of the 7,800 banks in the US, 829 were still having problems. Another 118 banks have failed already in 2010. For the first time in 38 years, the FDIC did not add any new banks to its files. There were actually 104 fewer banks during the second quarter when compare to the first quarter as the number of banks in the US continues to drop.
Lending is still slow for banks in the US. Banks are trying to ease up on their standards for lending for select loans but banks note that lending will not begin to increase until consumers and businesses regain confidence. Companies need to hire and consumers need to spend. There are some good signs that efforts by the federal government to stabilize bank lending is working. For the first time since 2006, there has been a decline in the number of loans that have gone three months or more passed due. Additionally, the amount of loans being charged off by banking institutions has been on the decline for most of the major loan types.
Banking profits totaled $21.6 billion in the second quarter, which hare the highest quarterly earnings since the crisis in the industry began. The FDIC is reporting that two-thirds of the banks in the US are reporting improvement each quarter.
Right now the list of troubled banks stands at 829 which is the highest since 1993. Previously only 53 banks were at risk of failure during the previous quarter. One year ago, the FDIC’s list included 416 banks on the watch list. Banks on the list are considered to be at risk of failure but most of the lenders have actually hit a point of failure.
829 US Banks Still At Risk Says FDIC was created by and is property of American Consumer News.
