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Regional Outlook


Camera-ready art of "Regional Outlook" (758Kb PDF file - PDF help or hard copy)


In Focus This Quarter

Subprime Lending: A Time for Caution - The extent of subprime lending is increasing as strong competition for high-quality borrowers has some lenders moving down the credit quality spectrum. Subprime lending requires a commitment of resources and expertise beyond that required in more conservative lending, and the consequences of deficiencies in underwriting, servicing, and collection can be severe. By Kathy R. Kalser, Debra L. Novak

Retail Shakeout: Causes and Implications for Lenders - Despite favorable economic conditions, the retail industry is experiencing slow revenue growth in a highly competitive environment. The confluence of rapid change in store formats and slow revenue growth has led to an ongoing shakeout among both large and small retail chains, and this shakeout may adversely affect credit quality at some insured institutions. By Richard A. Brown, Diane Ellis

Regular Features

Regional Economy - Personal income and employment growth in the San Francisco Region remain strong and continue to outpace the nation. Analysts are predicting continued expansion in 1997, although enthusiasm is somewhat tempered because the Region's strength is currently fueled by industries with a history of boom and bust cycles. By Gary C. Zimmerman

Financial Markets - Securitization of home equity loans is growing rapidly . . . consumer debt consolidation loans may be driving this growth . . . signs of relaxed underwriting have appeared . . . the arrival of FASITs could increase the appetite of community banks to enter the ABS market. By Allen Puwalski

Regional Banking - Healthy net interest margins, rising levels of noninterest income, and the implementation of several regulatory reporting changes boosted reported first-quarter profits at the Region's depository institutions. As the pace of merger activity increases, a recent SEC ruling tightening criteria pooling of interest method for mergers may increase popularity of the purchase method. By Catherine I. Phillips-Olsen, Roger Stephens, DiAnn Bielaczyc


A Publication of the Division of Insurance

Regional Outlook Information


Last Updated 7/27/1999 insurance-research@fdic.gov