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Each depositor insured to at least $250,000 per insured bank

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FDIC Outlook

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In Focus This Quarter:
A Preliminary Assessment of the Effects of Recent Hurricanes on FDIC-Insured Institutions
Hurricanes Katrina and Rita have taken a heavy toll on the lives and livelihoods of millions of Gulf Coast residents. Even as Americans responded to the immediate humanitarian crisis that followed the storms, they gained a new appreciation for the economic importance of this region to the rest of the nation. Like other sectors, the region's banking industry was hit hard by Katrina and will be dealing with its consequences for some time to come. This issue of FDIC Outlook provides a preliminary assessment of Katrina's effects on local financial institutions and the regional and national economies.

FDIC - Insured Institutions Headquartered in the Katrina Disaster Zone. Bank Performance after Natural Disasters:
A Historical Perspective

How resilient have banks been in the face of past natural disasters? This article looks at four natural disasters that have struck the United States since 1989 and describes how local banks performed in their aftermath. While no banks are known to have failed as a result of these past natural disasters, credit quality deteriorated in some cases. Given the unprecedented scale of destruction and displacement resulting from Katrina, it remains to be seen how applicable these lessons may be to banks in the hardest-hit Gulf Coast areas.

Financial Characteristics of Banks Affected by Katrina
Focusing on the 49 counties and parishes in Louisiana, Mississippi, and Alabama designated as eligible for federal disaster assistance, this article summarizes the financial condition and performance of local financial institutions just prior to Katrina.

Unique Challenges Face FDIC-Insured Institutions after Katrina
In the immediate aftermath of Katrina, banks located in the hardest-hit areas of New Orleans and the Mississippi Gulf Coast worked first and foremost to overcome a range of operational difficulties. Depending on the pace and direction of the region's rebuilding effort, individual banks may contend with longer-term issues associated with credit quality and franchise value; however, a complete assessment of these longer-term issues may not be possible for some time.

Also in this issue:

Letter from the Executive Director

Last Updated 01/23/2006

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