The number of problem banks in the United States has increased to 68, with unrealized losses approaching $500 billion

According to Odaily Planet Daily, the latest data from the Federal Deposit Insurance Corporation (FDIC) showed that the number of problem banks in the United States increased to 68 in the third quarter. This is the fifth quarterly increase since the second quarter of 2023.

In the CAMELS rating system, level 4 indicates that the bank has financial, operational or management problems, while level 5 requires urgent remediation. The total assets of problem banks increased by US$3.9 billion to US$87.3 billion, accounting for 1.5% of the total number of banks.

Banks' unrealized losses declined, with book losses of $364 billion in the third quarter, $148.9 billion less than in the second quarter. But the FDIC chairman said the reduction may be temporary, with unrealized losses approaching $500 billion.