116 U.S. small and medium-sized banks fail a new round of commercial real estate bad news

Zhangyan November 2, the United States's largest commercial and credit institutions citgroupinc (CIT) filed for bankruptcy, the United States in the history of the 5th largest bankrupt large enterprises. In addition, the U.S. bankruptcy of small and medium-sized banks have been more than hundreds of October 30, 9 banks in bankruptcy was taken over by the FDIC, a single day, the number of U.S. bank failures in the "Guinness record."　　Among them, the National Bank of California was taken over as the fourth largest bank in the United States. A week ago, the United States closed 7 banks in one day. In other words, a total of 16 banks in the United States failed within 8 days. So far, the number of small and medium-sized banks in the United States has reached 116.　　Many market participants believe that bank failures in the United States will show an upward trend.　　At present, the FDIC has spent 25 billion of dollars to take over the failing banking institutions, which is expected to reach $100 billion trillion in 2013.　　This round of bank failure, or a new round of commercial real estate bad debts. U.S. commercial real estate loans have exceeded 1 trillion trillion dollars this June, 14.2% of which are bank loans, Reuters estimates. Demand for commercial property has continued to languish since 2007, thanks to high unemployment and high vacancy rates.　　Community banks are most affected by the impairment of commercial property because many small banks are too reliant on commercial property.　　The price of commercial property in the United States has fallen by 35% to 40% per cent and has fallen unabated. The report, released at the end of October, says most commercial property markets in the United States continue to be weak and will not recover anytime soon.　　Among them, Indian Minneapolis, Detroit, Phoenix, Cleveland, Atlanta are the hardest hit. Sheila Bair, chairman of the FDIC, said: "The U.S. commercial real estate issue, will accelerate the bank failure." "October 30, four regulators, such as the Federal Reserve and the U.S. Monetary Authority, issued new rules on commercial property loans, warning of the risks to small and medium banks from commercial property loans.　　Meanwhile, in order to stabilize the volatile commercial property market, US regulators have stressed that financial institutions should not classify creditworthy borrowers as "high-risk" borrowers because of the impairment of commercial real estate collateral, in order to prevent the subprime-mortgage crisis-type domino effect. The new rules point to the key to six major risk management. First, effectively identify, control and manage the underlying risks. Second, through effective standards to define the borrower's financial position and collateral value. Third, through effective information systems and internal control procedures to monitor loan utilization and potential risks, including the concentration of risk. Iv. ensure that the materials submitted to the regulators conform to international accounting standards and other regulatory guidelines. To ensure the effectiveness of loan measurement.　　Six, adhere to the supervision level, internal audit lending bottom line. "This is important for small and medium-sized financial institutions that suffer from reduced cash flow, devaluation of collateral and delayed repayment." The US Federal Deposit Insurance Corporation said.