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 Examinerís 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
Supervisory Insights is published by the Division
of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation
to promote sound principles and best practices for bank supervision.
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
Sandra L. Thompson, Deputy
Ronald F. Bieker, Regional Director
John F. Carter, Regional Director
Nancy E. Hall, Regional Director
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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those of the authors and do not necessarily reflect official positions of the
Federal Deposit Insurance Corporation. In particular, articles should not be construed
as definitive regulatory or supervisory guidance. Some of the information used
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