FYI: The Federal Deposit Insurance Corporation (FDIC) warned of potential credit and market risks that market participants should definitely heed. In particular, the FDIC’s 2019 Risk Review Report released yesterday highlighted concerns in the agricultural, commercial real estate, energy, housing, and leveraged lending sectors. Additionally, the risk review report covered the significant rise in bank loans to non-banks.
Six years of agriculture prices and recent trade tensions are impacting agriculture borrowers. “A slowdown in the agricultural economy is an important risk to the FDIC because farm banks are a large source of financing for the agriculture industry and represent about one-fourth of banks in the United States.”
Regards,
Ted
https://www.forbes.com/sites/mayrarodriguezvalladares/2019/07/31/investors-should-heed-fdic-warnings-of-key-credit-risks-to-banks/?ss=etfs-mutualfunds#4b0fe6696088
