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"The problems have been focused particularly on the construction and land development loans, and that's not a surprise, " says James Chessen, chief economist for the American Bankers Association.
NPR: Worsening Credit Markets Cause More Banks To Fail
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Overexposure to construction and development loans: The first guideline states that if loans for construction, land development and other land are 100% or more of total risk capital, the institution is considered to have loans concentrations above prudent risk levels, and should have heightened risk management practices.
FORBES: FDIC Bags Five More Banks
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Overexposure to construction and development loans: The first guideline states that if loans for construction, land development and other land are 100% or more of total risk capital, the institution is considered to have loan concentrations above prudent risk levels, and should have heightened risk management practices.
FORBES: Six Small-Cap Bank Stocks To Avoid