Banking news
FDIC list of problem banks continues to shrink
The Federal Deposit Insurance Corp. (FDIC) announced that the number of banks on its “problem list” in the third quarter declined for the second quarter in a row and the industry posted its ninth-straight profitable quarter.
Banks on the FDIC’s “problem list” are considered to be in financial difficulty, based on their capital, liquidity levels and asset quality. At the end of the third quarter, there were 844 problem institutions, down from the 865 problem institutions at the end of the second quarter and less than the 888 on the list at the end of the first quarter.
FDIC-insured institutions reported net income of $35.3 billion in the third quarter, an increase of $11.5 billion or 49 percent compared with a year earlier.
According to the FDIC, non-current loans and loan losses continued to fall in the third quarter, but they remained above pre-crisis levels.
