Banking industry finances improve.
Problem loans throughout the banking system declined $3.13 billion, while net income rose by $4.3 billion and loan loss reserves decreased 40 million. As a result, effective net income for the system rose to $7.39 billion, the highest quarterly figure in two years.
However, despite the overall improvement in bank finances, problem real estate loans increased in 39 states during the quarter, as the recession aggravated commercial real estate loans and led to new difficulties with residential mortgages. Problem real estate loans have more than doubled in the past year in Virginia (up 209%), Delaware (up 151%), Maryland (up 120%), the District of Columbia (up 120%) and California (up 106%).
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|Publication:||Journal of Accountancy|
|Article Type:||Brief Article|
|Date:||Mar 1, 1992|
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