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.


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