June 26, 2007
Banks becoming more problematic
By Cory Hopkins
The number of "problematic" banks nationwide rose more than 50 percent in the past year, according to Coral Gables, Fla.-based BauerFinancial Inc., an independent bank rating and research firm.
The number of banks receiving two or fewer stars on the BauerFinancial five-star scale rose to 64, up from 41 at this time last year, said Karen Dorway, president of BauerFinancial.
In all, 78 percent of the nations 8,651 banks achieved "recommended" status, earning four or five stars.
BauerFinancial also rates the nation's credit unions. Nationwide, 125 credit unions received a "problematic" rating, down from 156 last year.
"Subprime and other credit worries are weighing heavily on the minds of many, but our analysis of the banking industry indicates that the vast majority of banks are well prepared to whatever fallout may result," Dorway said.
BauerFinancial has been rating FDIC-insured banks and credit unions from a depositor's perspective since 1983.
The number of banks receiving two or fewer stars on the BauerFinancial five-star scale rose to 64, up from 41 at this time last year, said Karen Dorway, president of BauerFinancial.
In all, 78 percent of the nations 8,651 banks achieved "recommended" status, earning four or five stars.
BauerFinancial also rates the nation's credit unions. Nationwide, 125 credit unions received a "problematic" rating, down from 156 last year.
"Subprime and other credit worries are weighing heavily on the minds of many, but our analysis of the banking industry indicates that the vast majority of banks are well prepared to whatever fallout may result," Dorway said.
BauerFinancial has been rating FDIC-insured banks and credit unions from a depositor's perspective since 1983.
WBJ Web Partners
Most Recent
Most Recent
0 Comments