The states of concentration risk

The concentration of risk.  Essentially, nobody likes it and everyone wants to get rid of it.  Regulators frown on it.  Well, we’ve taken a look at it by state and by a couple of products to see what it looks like across the United States.  This graphic is for credit unions.  There are some similarities between the two portfolios, but it is clear that the concentration of credit cards within the aggregate portfolio is quite small.  As we all know, credit unions spent a great deal of time selling off portfolios some years ago.  Pricing has a been low-priority issue for regulators when it comes to credit cards.  Pricing tends to fluctuate as market rates fluctuate, thereby keeping institutions insulated from interest rate risk.  First mortgages, however, have been a growing concern for regulators.  On our next blog entry, we’ll take a look at concentration risk by asset size.

 

Concentration Risk by State

All data provided by SNL Financial.  Data visualization courtesy of Tableau Software.  Click here to enlarge.