COMMERCIAL LOAN LOSSES CONTINUE TO GROW, FDIC REPORT SHOWS
FOR IMMEDIATE RELEASE PR-22-2002 (02/27/2002)
Media Contact: David Barr (202) 898-6992
Bank losses on commercial and industrial loans grew again in the fourth quarter of 2001, while key measures of capital and loan loss reserve adequacy also rose, according to a report issued today by the Federal Deposit Insurance Corporation (FDIC). The analysis of year-end Call Report data also notes some weakening in credit quality at smaller banks and in loan types other than commercial loans. The banking industry as a whole remains well-positioned to withstand the economic downturn, with a ratio of equity capital to assets that is higher than levels one year ago.
The report's findings are summarized in FYI, an e-mail bulletin that summarizes FDIC analysis of emerging issues in banking and the economy. FYI is available on the FDIC Web site at www.fdic.gov, where those interested in receiving each issue electronically may subscribe. A copy of FYI is attached.
This issue of FYI also provides links to a Webcast to be held Thursday, February 28, at 10:00 a.m., that will summarize the full results of the FDIC Preliminary Bank Earnings Report for the fourth quarter of 2001.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,747 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
FDIC press releases and other information are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).