, and analysis of guarantor support for real estate transactions was inadequate. based on these findings, we are currently planning a further series of targeted reviews to identify those banks most at risk to further weakening in real estate market conditions and to promptly require remedial actions. we have also developed and started to deliver targeted examiner training so that our supervisory staff is equipped to deal with more serious cre problems at banking organizations as they arise. commercial and industrial loans while there are some pockets of poor performance in commercial and industrial lending, for the most part the sector continues to perform fairly well. commercial and industrial ( c & i ) loans surged in 2007 because of extremely rapid growth in the second half of the year resulting, in part, from large banks'inability to syndicate leveraged loans that they had underwritten. finally, after the issuance of an unprecedented amount of leveraged syndicated loans over the first half of 2007, issuance declined considerably in the second half of the year, when demand by nonbank investors for those loans diminished. in the senior loan officer opinion survey of october 2007 and january 2008, many banks reported charging wider spreads on c & i loans – the loan rate less the bank's cost of funds – representing the first such tightening in several years. a large proportion of banks also indicated that they had tightened lending standards. most of the banks that tightened terms and standards indicated that they had done so in response to a less favorable or more uncertain economic outlook and a reduced tolerance for risk. however, about one - fourth of the banks cited concerns about their own liquidity or capital position as reasons for tightening. the delinquency rate on c & i loans at commercial banks trended higher throughout 2007, but remained near the bottom of its historical range at the end of the year. charge - offs on c & i loans at commercial banks also increased in 2007, particularly in the fourth quarter when the charge - off rate moved up from 0. 48 to 0. 85 percent of average c & i loans. in addition, examiners continue to note early signs of credit deterioration at some banks where delinquencies have not yet increased significantly. here, too, supervisors are responding to ensure that banks'commercial and industrial ( c & i ) lending activities remain safe and sound. examiners are focusing on underwriting standards, evaluating both the methodology and results of banks'stress tests of credit portfolios and the impact of potential shocks on credit and asset quality. credit administration – that

net income exceeding $ 90 billion for the full year of 2007. in addition, the overall nonperforming assets ratio remained below levels reached earlier in this decade. the earnings performance of the fifty largest u. s. based bank holding companies as a group, which together represent more than three - fourths of all assets at bank holding companies, has clearly been subpar over the past two quarters and accounts for the industry's overall weak performance. in aggregate, these companies generated overall losses of over $ 9 billion for the fourth quarter, incorporating asset write - downs of more than $ 31 billion and loan loss provisions that exceeded loan charge - offs by $ 14 billion. nonperforming assets also swelled at these companies during 2007, doubling from $ 33 to $ 67 billion, and raising the nonperforming assets ratio from a historically low 0. 70 percent at december 31, 2006, to 1. 25 percent at the end of 2007. liquidity has also been under pressure at some of the fifty largest bank holding companies. in many cases, these pressures reflect difficulties securitizing some assets and the need to bring on balance sheet some assets that had previously been securitized. as a result, banking companies have experienced a moderate overall decline in liquid assets as a portion of total assets, and strains have emerged in term interbank funding markets. bank holding companies are actively responding to these pressures and some have sought to increase more stable sources of funding to bolster their liquidity positions. in addition, as noted in last week's monetary policy report, the federal reserve has taken a number of steps to address the difficulties in term funding markets. asset write - downs and unplanned increases in assets have placed pressure on capital ratios and caused some banking organizations to take a more cautious approach to extending credit. however, large bank holding companies in aggregate and individually continued to maintain regulatory capital ratios in excess of minimum regulatory requirements. as of december 31, 2007, the fifty largest bank holding companies reported aggregate tier 1 leverage, tier 1 risk - based, and total risk - based capital ratios of 5. 3, 7. 5, and 11. 1 percent, respectively. in part, these capital ratios reflect steps taken by several large bhcs to replenish depleted equity positions by curtailing share repurchases, reducing dividends, and raising additional capital in order to maintain desired capital levels relative to regulatory norms. indeed, in recent months, large bank holding companies have raised