Criticized Loans Are Stabilizing at Many of the Large Banks
While banks have not had to reckon with charge-offs and non-performing loans this year to the extent they would in a normal recession, criticized commercial loans have been steadily increasing. A criticized loan is one that is in danger of defaulting but may not necessarily be past due, and therefore may not show up as a write-off or even a delinquent loan. When they rise, it's another indicator of deteriorating credit and can be a hint of what's to come.
In the third quarter, some of the big banks saw their criticized commercial loans come down from the elevated levels in the second quarter, although not all. Let's take a look.
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Source Fool.com
