Composition of Loan Portfolios of FDIC-Insured Institutions

Have you ever wondered how much of the total outstanding loans in the USA is related to residential mortgages? Residential mortgage loans have been attributed as the main culprit behind the credit crisis. To be more precise, it is the sub-prime residential mortgages.

Some say that other type of loans such as credit cards, commercial construction loans, etc. will be the next to collapse. To get a clear picture, I found the following chart from the FDIC’s Quarterly banking Profile for 3Q, 2008:
(Click to enlarge)

Residential mortgages constitute the largest portion of all loans.Construction and non-farm non-residential real estate loans add up another 21%.Hence overall real estate related loans form the most of all loans. Unless the toxic loans in this real estate assets are cleaned up the housing sector will continue to spiral down more.

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