Assessing Commercial Real Estate Portfolio Risk
Banks in some metropolitan areas are increasing exposures to
commercial real estate lending during a time of weak market
fundamentals. To understand the level of portfolio risk, supervisors
must "get behind the numbers." An FDIC pilot program in Atlanta
did just that.
From the Examiners Desk
Enactment of the USA PATRIOT Act and changes in the Bank Secrecy Act
(BSA) have heightened the visibility of bank BSA compliance programs.
How are bankers and examiners dealing with these changes?
In response to recent guidance from the American Institute of Certified
Public Accountants, bankers and examiners must take a new approach
to the accounting for purchased impaired loans beginning in 2005. This
article explains how this new approach will affect the bank accounting
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of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation
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Donald E. Powell
Michael J. Zamorski
Director, Division of Supervision
and Consumer Protection
George E. French
Journal Executive Board
Donna J. Gambrell, Deputy
John M. Lane, Deputy Director
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Scott M. Polakoff, Regional
Mark S. Schmidt, Regional Director
Christopher J. Spoth, Regional
Kim E. Lowry Managing Editor
John S. Wholeben Financial Writer
James J. Willemsen Financial Writer
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