First and Ten: A Fresh Start for Banks in the 1990s
Most are all too familiar with the recent troubles in the banking industry. Banks with heavy concentrations in commercial real estate loans have suffered large losses. In addition, the loan portfolios of many banks have exhibited other signs of weakness. Banks have responded to deteriorating loan portfolios by increasing provisions and charge-offs, deepening the pressure on earnings. These problems have contributed to many bank failures, adding to the liquidity problems of the bank deposit insurance fund.