According to Hong Kong Pao cited foreign coverage, the United States small bank failures speed is still increasing, and already appears 2009 100 banks collapse. United States Federal Deposit Insurance Corporation thus increasing the burden, the reserve fund is now in deficit.
Almost every Friday, a United States Federal Deposit Insurance Corporation (FDIC) for several failed bank mess. This year has taken over 98 home, with commercial property mortgage performance deteriorates, many small banks in distress is only just beginning. Although economic stabilisation order such as Goldman Sachs and American silver, and other large institutions have slow growth of the business, but this does not mean that small banks also have the same treatment.
On the contrary, United States of small banks have not from the financial crisis, with housing loans problem of deteriorating, many small banks are overwhelmed. Many analysts point out that current toxic assets, is enough to make hundreds of thousands of small banks in the next few years have been closed.
In this case, the burden of FDIC continues to increase, and the reserve fund is exhausted, there are more than two years ago, now has 500 million deficit. FDIC also will the coming four years because of bank failures and the need for rehabilitation costs, from the initial estimate of $ 70 billion to about $ 100 billion. FDIC Chairman Bernard (SheilaBair) considers that, in the short term, the trend of small bank failures will continue.
Visibility the after-effects of the financial tsunami has not been in the past, small institutions to continue to survive, it must be tightened credit, or cancel a high interest savings, but also to increase the level of customer credit. In the longer term, many banks will need to turn off some branches, to cut costs.
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