Banking & Finance State’s Nonperforming Loans Highest in Region
by January 14, 2008 12:00 am 66 views
In the third quarter of 2007, Arkansas banks collectively had a nonperforming loan ratio of 1.39 percent, up from 0.85 percent for the same period in 2006.
The ratio is a percentage of a bank’s assets that are 90 days or more past due and those that are not accruing interest.
Therefore, on average, banks in Arkansas had 1.39 percent of loans in problem categories, higher than any other state in the U.S. Federal Reserve Bank’s Eighth District.
The collective reserve ratio for the Eighth District, which includes all of Arkansas and parts of six other states, was 1.10 percent. The U.S. average was 1.04 percent.