Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Dallas
Southwest Economy
District banks' exposure to modified loans limited
Kory A. Killgo
Abstract

Banks in the Eleventh Federal Reserve District are performing better than their peers. However, signs of strain are still evident following the recession and financial market crisis. Some banks that restructure troubled loans by granting borrowers easier terms subsequently find the loans delinquent again. ; While the number of restructured loans has grown dramatically, these loans remain a small part of the average bank's balance sheet, a review of district data shows. Lenders here are less likely to carry restructured loans than banks around the country, and when they do hold such assets, problems don't appear to be out of line with historical tendencies. These findings indicate that the current experience with loan restructurings in the district is less a cause for alarm and more a helpful response to some borrowers' difficulties.


Download Full text
Cite this item
Kory A. Killgo, "District banks' exposure to modified loans limited" , Federal Reserve Bank of Dallas, Southwest Economy, issue Q4, pages 16-19, 2010.
More from this series
JEL Classification:
Subject headings:
Keywords: Federal Reserve District; 11th ; Banks and banking ; Mortgage loans
For corrections, contact Amy Chapman ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal