Banks have started reporting third-quarter earnings, and the first batch shows ongoing commercial real estate loan weakness, particularly at smaller banks. "The most prominent area of risk for rising credit losses at FDIC-insured institutions during the next several quarters is in CRE lending," said Sheila Bair, chairwoman of the Federal Deposit Insurance Corp. Small-bank executives, however, did note that they were finding it easier to sell troubled loans to investors.

Related Summaries