Bair: Bank Charge Offs Related to CRE Higher in 2010
January 22, 2010
The Chairwoman of the FDIC, Sheila Bair, indicated that the charge-offs will continue.
Federal Deposit Insurance Corp. Chairman Sheila Bair said in a speech that regulators expect banks to report higher delinquencies and charge-off rates for commercial real estate properties in the first three months of 2010. Speaking to the Commercial Mortgage Securities Association, Bair said even income-producing properties have seen a decline in credit performance.
She also indicated that the big banks were suffering just as the small ones were, something which in 2009 seemed to be dismissed by man:
Despite what you may be hearing, CRE credit problems are affecting big and small banks alike. In fact, CRE noncurrent and charge-off rates are higher at banks with over one billion dollars in assets than at community banks. Industry analysts expect CMBS delinquency rates to continue climbing.
[via The Atlantic]
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Tags: Banking, Banks, Commercial Real Estate, FDIC
loan portfolio quality is deteriorating rapidly. so here from some banker associates.