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Economic Commentary

Bank Exposure to Highly Leveraged Transactions

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The commercial banking industry as a whole fared well in 1992, with many institutions citing improvements in profitability. Despite this overall good news, however, analysts continue to question the health of some sectors of the industry. Such doubts ring familiar to those who recall banks’ difficulties in the 1980s as a result of overinvestment in loans to agricultural and energy interests, to less-developed countries, and to commercial real-estate ventures in the Northeast and Southwest.

01.15.1993ISSN 2163-3738 EC 1/15/1993

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Osterberg, William P. 1993. “Bank Exposure to Highly Leveraged Transactions.” Federal Reserve Bank of Cleveland, Economic Commentary 1/15/1993.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International