Charting Banking XXI: Nonperforming Loans by Category

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 |  Includes: KBE, KRE, XLF
by: PlanMaestro

I should have probably shown this information earlier in the series because an important skill when evaluating banks is identifying pockets of risks and their size.

Mortgages, the epicenter of the crises, are no small issue. Even considering that many of them were securitized there is no way around it; mortgages are one large key bank activity especially for big banks (click to enlarge).

How bad are the non-performing loan issues for each category? There are two protagonists and the rest are just secondary actors. These are the loan percentage by category that are non performing (click to enlarge).

It is already more than three years into the crisis and regulators have been pushing hard NPL recognition. We can slice and dice nonperforming loan data and look at them from whatever side you want. The banking crisis has not spread to the same degree beyond residential real estate. Mortgages and risky residential C&D loans--CRE C&D in a smaller scale too--are the crisis.

Considering that other types of loans do not look so threatening in isolation, blaming non-residential loans for the sector problems is like blaming the hangover on that last beer (after drinking a whole bottle of tequila).

Source: bankregdata.com