Future U.S. bank failures linked to the downturn in the real-estate market may include “institutions of greater size” than in the recent past, Federal Deposit Insurance Corporation (FDIC) chairwoman Sheila Bair said Thursday. Addressing a Senate Banking Committee hearing on the state of the banking industry, Bair said an increasing number of banks face high exposure to commercial real-estate and construction lending. “There is also the possibility that future failures could include institutions of greater size than we have seen in the recent past,” she said. “Uncertainties in today's economic environment continue to pose significant challenges for the banking industry, households, and bank regulators.” The FDIC, which has $52.8 billion in its deposit insurance fund, has launched a review of its risk-assessment rates for larger banks to determine if they reflect current conditions, Bair said.
