A.M. Best Says Larger Banks Suffering More from Subprime
Sunday, April 20, 2008
Larger banks seem to be suffering more from subprime-related write-downs when compared to other smaller-to-mid sized banks, according to a new A.M. Best analysis report released this week.
A.M. Best Co. is a credit rating organization that evaluates the financial services, healthcare and insurance industries. In its latest report, A.M. Best added that “smaller banks are directly or indirectly facing credit problems with consumer mortgages similar to the largest 200 banks.”
The report also recognizes a dangerous trend, similar to the 1980s, where there seems to be a regional pattern to the credit crunch, with Texas being a noted exception, A.M. Best asserted.
In addition, A.M. Best data concludes that a survey of smaller banks ranking under the top 200 institutions showed Midwestern, Central, Southeastern and West Coast states as having the highest concentration of high non-performing asset rates, the report concluded.
The states with the worst asset quality include Alaska, Arizona and Arkansas, according to the report.
A.M. Best Co. is a credit rating organization that evaluates the financial services, healthcare and insurance industries. In its latest report, A.M. Best added that “smaller banks are directly or indirectly facing credit problems with consumer mortgages similar to the largest 200 banks.”
The report also recognizes a dangerous trend, similar to the 1980s, where there seems to be a regional pattern to the credit crunch, with Texas being a noted exception, A.M. Best asserted.
In addition, A.M. Best data concludes that a survey of smaller banks ranking under the top 200 institutions showed Midwestern, Central, Southeastern and West Coast states as having the highest concentration of high non-performing asset rates, the report concluded.
The states with the worst asset quality include Alaska, Arizona and Arkansas, according to the report.
