Bank Analysis School eBook

Bank Failures are not Uncommon

157

140

Failed Banks

92

51

25

24 18

7 4 11

8 5 8

3 4 0 0 3

0 4 4 0 0 5

Commonalities of Failed Banks Summary Analysis of Failed Bank Reviews report from the Office of the Inspector General Aggressive growth Concentration in construction and land development loans Reliance on noncore funding Poor risk management Compensation incentives encouraging risk-taking 1 2 3 4 5