WASHINGTON — The number of problem banks jumped by 36% in the second quarter, hitting 416, while assets held by such banks also saw a whopping increase, rising 36% to $300 billion, the Federal Deposit Insurance Corp. said Thursday.

In its quarterly profile, the agency's data shows the banking industry's losses are likely to continue rising. The FDIC set aside $11.6 billion during the quarter for expected failures, as the Deposit Insurance Fund sunk to $10.6 billion. In total, the FDIC has now set aside $32 billion for expected losses, and the ratio of reserves to insured deposits now stands at its lowest point in well over a decade, at 0.22%.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.