As the credit crisis gets worse, many banks are now experiencing the pinch of offering so many bad credit or CCJ loans. While most of the focus has been on the largest banks in the US, the smaller ones are also suffering from bad credit or CCJ loans, they just aren’t getting the same amount of press. The western states in the US have been the most affected and many banks there may be facing ruin if they cannot get help to stay afloat. Even those that stayed away from bad credit or CCJ loans are still having trouble.”Although the bank has never originated subprime mortgages, we are nevertheless feeling some effects from the slowdown in demand for home construction, the reduction in interest rates, and the general slowing of the economy,” said CEO Jack Briner of First Mountain Bank Corp.Other inland banks are also experiencing problems with bad credit or CCJ loans. “The impact of the deterioration of the Nevada and Arizona economies and the real estate markets on certain segments of our loan portfolio … began to be realized toward the end of the first quarter,” said Chief Executive Officer Corey Johnson of Silver State.
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