95th Bank Failure Due to Rising Georgia Foreclosure Homes

by cassy82 | October 2, 2009 at 08:37 am

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The unabated increase in the number of Georgia foreclosure homes and loan defaults has been blamed for the shutdown of Georgian Bank. The bank closing is the 95th case in the United States for this year.

The increasing number of Georgia foreclosure homes has claimed its latest victim in the form of Georgian Bank based in Atlanta. The bank closing is said to be the 95th case reported nationwide this year. Adding to the problem of the banking industry is the rising loan default rates involving commercial properties.

According to industry experts, more banks and other financial institutions are expected to close their business because of the pressure of the growing residential foreclosure problem. Additionally, the commercial real estate market is also showing some signs of joining the foreclosure bandwagon as a great number of commercial loans have been delinquent.

Experts said that bank failures could jeopardize the insurance funds for deposits which were already at their lowest points since 1989.

By Cassiano Travareli