Across the U.S., hundreds of small and regional banks are feeling stressed and may be at uncertainty of failure. Of about 4,000 U.S. banks analyzed by the Klaros Group, 282 banks face stress from commercial real estate exposure and potential losses tied to higher finance charge rates. Most banks facing risks are categorized as small, or community, banks. Though the uncertainty is less systemic compared to the Big Banks, community and regional banks are an important source of loan to local businesses and governments. “There’s no doubt in my mind there’s going to be more economic organization failures,” former chair of the U.S. Federal Deposit coverage Corporation Sheila Bair told CNBC. Watch the video to learn more about the uncertainty of commercial real estate, the role of finance charge rates on economic organization balance sheets and what it may take to relieve stress on banks — from regulation to mergers and acquisitions.
Chapters:
1:40 Chapter 1 – Stressed banks
4:56 Chapter 2 – Commercial real estate
6:21 Chapter 3 – ‘Unrealized’ losses
7:51 Chapter 4 – Rescuing banks
9:58 Chapter 5 – Regulation
11:57 Chapter 6 – economic organization failures
Produced and Edited by: Andrea Miller
Reporting by: Hugh Son
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
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Why Hundreds Of U.S. Banks Are At uncertainty Of Failing
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