Iowa banks rank high in analyst’s stress test
Iowa banks would do better than their counterparts elsewhere should there be another collapse in the real estate market, according to a report by Trepp LLC, which analyzes the commercial real estate and banking markets.
Trepp set about to do its own stress testing of the nation’s banks in the wake of the Dodd-Frank Wall Street Reform and Consumer Protection Act, adding variables to the measures federal banking reformers use on the largest banks.
According to the Trepp Capital Adequacy Test that was released earlier this month, Iowa banks came out of the Great Recession with healthy levels of capital and relatively low levels of commercial real estate loans.