New FDIC rules on real estate write-offs are very liberal -- for banks

The FDIC released new guidelines to bank examiners on Oct. 30, and they present a more "liberal" view of what is and is not a nonperforming commercial real estate loan. In theory, the regulations could reduce the number of bank write-offs.

The guidelines say that "while CRE [commercial real estate] borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity to repay their debts. In such cases, financial institutions and borrowers may find it mutually beneficial to work constructively together."