While this continues to show a more healthy banking system, it's a question of whether the glass is half full or half empty. Let's look at the Q3 2013 statistics vs. the statistics in Q4 2007.
Number of Banks The number of FDIC-insured financial institutions declined by 1,643 since the end of 2007 to 6,891 at the end of the third quarter of 2013. That's a decline of 19.3% with 488 of the decline done via the FDIC bank failure procedures.
Total Assets Despite the Great Credit Crunch total assets in the banking system increased by $1.56 trillion since the end of 2007, up 11.9% to $14.6 trillion.Residential Mortgages declined by $403.9 billion since the end of 2007, a slide of 18%. Nonfarm Nonresidential Real Estate Loans increased by $124.1 billion since the end of 2007 a gain of 12.8%. This segment of CRE loans have been deemed less risky. Construction and Development Loans declined by $422.8 billion since the end of 2007, a whopping 67.2%. This is the real estate segment that took the deepest hits with much of this risk among community and regional banks. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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