What Should Banks Be Nervous About? Just About Everything, Top Regulator Says |
| Forbes - Jul 6, 2012 |
If you’re wondering what kind of risks banks are facing these days then look no further than the OCC’s report today which lists ongoing threats to the banking industry.
In its first ever “Semi Annual Risk Perspective” report the U.S. Office of the Comptroller of the Currency says the industry is still trying to figure out how to operate and profit in the post-financial crisis environment. While banks have increased capital and money set aside for potential loan losses are at comfortable levels there are still lingering issues including the ongoing housing mess, a slow-growth economy and the potential that banks will take excessive risk to improve profits.
Among lingering problems is the housing market which continues to struggle as home prices continue their decline off their peak prices. According to OCC, the percentage of foreclosures in process increased from 4 percent at June 30, 2011 and December 31, 2010 to 4.1 percent. “A large overhang of foreclosures suggests that many areas may see further declines in home prices. Any slowing in the economy could affect the recovery in real estate values, a key component of problem assets in the banking industry,” the report notes.
Read Full Article from Forbes
- Posted: 2012-07-06 12:34:59
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
