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FDIC Problem Bank List

FDIC Problem Bank List

What is FDIC Problem Bank List?

FDIC Problem Bank List is a confidential rundown, distributed by the Federal Deposit Insurance Corporation (FDIC) each quarter, of U.S. banks and frugalities that are near the very edge of financial insolvency.

Understanding FDIC Problem Bank List

To make the FDIC problem bank list, a bank must have financial, managerial or operational shortcomings that undermine its proceeded with financial reasonability. Just institutions that are insured by the FDIC through the Deposit Insurance Fund are on the FDIC Problem Bank List. In the event that problems go on with a listed bank, the FDIC assumes command over it, before selling it to a stronger bank, or liquidating it and refunding the depositors.

The criteria to measure the solvency of the member banks depends on the FDIC's CAMELS rating system. CAMELS is an abbreviation for:

  • Capital ampleness
  • Asset quality
  • The board
  • Profit
  • Liquidity
  • Awareness

Since disclosing this data could begin runs on banks, the names of the banks are kept from the rundown. While the FDIC Problem Bank List isn't available to the public, the FDIC unveils the number of institutions that are on the rundown as part of its more extensive banking survey.

The FDIC Problem Bank List incorporates data for net interest edges, net income, and net trading revenue. It additionally remembers data for lending levels (outstanding loans) and asset quality —, for example, the level of nonperforming assets, net charge-offs (genuine loan losses), and loan loss provisions.

FDIC Problem Bank List and Bank Failures (2001 - 2020)

At the pinnacle of the financial crisis in 2009, there were almost 900 troubled institutions on the FDIC Problem Bank List. By 2018, this had fallen below 100.

True to form, there is a strong correlation between the FDIC Problem Bank List and the genuine number of bank disappointments. As per FDIC, a glance at bank disappointments beginning around 2001 shows that the pinnacle was reached in 2010, when 157 FDIC insured banks failed because of the 2008 financial crisis. With that number waning to 0 by 2018, however it showed a slight uptick to 4 of every 2019.

Features

  • Just institutions that are insured by the FDIC through the Deposit Insurance Fund are on the FDIC Problem Bank List.
  • In the event that problems go on with a listed bank, the FDIC assumes command over it, before selling it to a stronger bank, or liquidating it and refunding the depositors.
  • FDIC Problem Bank List is a confidential rundown, distributed by the Federal Deposit Insurance Corporation (FDIC) each quarter, of U.S. banks and frugalities that are near the very edge of financial insolvency.