Banks continue to fail in large numbers across the country, marking the second consecutive year in which more than 100 financial institutions have shuttered their doors. After 140 banks collapsed in 2009, this year has witnessed 103 failures so far, putting it on pace to surpass last year’s bleak total.
The weak economy has left commercial property and development floundering, causing loan holders to fall behind on payments or default altogether. This in turn has wrecked the balance sheets of local and regional banks, such as the seven that turned to the
Federal Deposit Insurance Corporation (FDIC) for help last week.
The last two years mark the worst period for bank failures since the savings and loan crisis came to an end in 1992, when 181 institutions went under.
The worst year on record since the FDIC was created in 1933 was 1989, with 534 closures.
-Noel Brinkerhoff