While the banking industry has seen significant recovery, the number of banks on the problem list remains at a historical high. Before the financial crisis, the number was relatively low compared to the number of FDIC-insured institutions. More than five years after the beginning of the financial crisis, however, nearly one out of every 10 FDIC-insured institutions remains on the list, according to Problem Bank List.
The total assets of problem banks fell by 11.3 percent, or $29.5 billion, in the fourth quarter to $232.7 billion. The number of FDIC-insured institutions declined by 99 in the fourth quarter as a result of the failure of eight banks and a number of acquisitions and mergers.
U.S. banks have declined in number over the past 10 years. In 1996, there were more than 11,450 FDIC-insured institutions. At the end of last year, the number of FDIC-insured banks had decreased by 38 percent to 7,083 banks, Problem Bank List reports.