The pace of bank failures slowed in Georgia this year, just 18 have failed compared to 25 in 2009. However, that number could grow again.

Several Georgia banks have been placed on so-called “watch lists.” They’ve made too many bad loans and don’t have enough assets. They can’t make new loans because they have no cash.

The second wave of bank failures could come next year. That’s because it takes longer for bad commercial loans to work their way through the system. Greg George is with Macon State Colleges Center for Economic Analysis.

“Larger banks are able to recapitalize with help from the Federal Reserve and from the TARP program and things like that. But, these small banks just haven’t had any relief and they’re basically fending for themselves.” (:10)

George says people should expect more bank failures and consolidations. Nearly one in 7 Georgia banks is considered under-capitalized. The state leads the nation in failed banks.

Tags: bank failures, Georgia banking crisis, Greg George, Macon State College Center for Economic Analysis