OCC Fears Profit Woes as Credit Quality Slips American Banker (10/02/00) Vol. 3, No. 5 p.1; Garver, Rob
The number of commercial loans that are past due at
least 90 days is on pace to exceed 50 percent this year,
according to Nancy Wentzler, deputy comptroller for global
banking and financial analysis at the Office of the Comptroller
of the Currency. Wentzler cautioned banks on Friday during her
quarterly review of banking industry conditions that they are
jeopardizing their earnings and creating a serious distraction
for their management teams if they allow credit quality to
decline. The defaulting loans were made in 1997 and 1998. "They
are on the books, and you are going to have to deal with them,"
said Wentzler. "You'd better look at them real carefully and
deal with them effectively and quickly." Commercial lending grew
11.4 percent per year from 1998 to 2000. However, there is no
indication that these loans are going bad.