Article: North Carolina Community Banks Warned to Protect Themselves from Loan Losses.

By Chris Serres, The News & Observer, Raleigh, N.C. Knight Ridder/Tribune Business News

Dec. 19--North Carolina's top banking regulator is warning community banks across the state to build a bigger cushion against loan losses, which have surged along with the weakening economy.

One out of seven of this state's community banks is not adequately protected against loan losses, according to guidelines set by the state banking commissioner If the economy worsens, some of these banks could face huge losses or worse.

"We haven't had a bank failure [in North Carolina] since 1991, and we are determined to keep it that way," said Joseph A. Smith, ...

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