Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Texas banks face increasing risks from low oil prices: Dallas Fed

Published 06/16/2016, 04:15 PM
Updated 06/16/2016, 04:20 PM
© Reuters.  Texas banks face increasing risks from low oil prices: Dallas Fed

© Reuters. Texas banks face increasing risks from low oil prices: Dallas Fed

(Reuters) - Banks in Texas and parts of Louisiana and New Mexico are setting aside more money to guard against loan losses as the energy companies they serve struggle amid still-low oil prices, the Dallas Federal Reserve Bank said in a report Thursday.

Banks in the district supervised by the Dallas Fed are also getting additional scrutiny for their commercial real estate loans, the regional Fed bank's president, Robert Kaplan, said in the report, which characterized commercial real estate as an "emerging area of concern."

"Loan growth slowed markedly in 2015 and, while the region’s banks remain profitable, bankers are setting aside more in provision expense to cover possible loan losses," Kaplan wrote in an introduction to the bank's quarterly Southwest Economy report.

Kaplan, who participated in this week's Fed policy-setting meeting in Washington, did not touch on the outlook for the national economy or monetary policy in his comments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.