WASHINGTON (Sputnik) — According to Treasury officials and some trade association representatives, many of the remaining institutions are financially healthy and likely will be able to repay the investment before dividend and interest rates increase in 2018, the report added.
"Treasury's total investment was about $570 million," the report said on Tuesday. "[The] Treasury received about $136 million in principal repayments and had written off about $7 million. The program's outstanding investment balance was $427 million."
As of March 31, 2016, the Treasury had approximately 76 percent of the original Community Development Capital Initiative, or TARP investment outstanding and 57 institutions remained, the GAO noted.
"Treasury had received about $57 million in dividend and interest payments from program participants. Treasury's most recent estimate of the program's lifetime cost was about $87 million (as of November 2015)."
The financial health of banks remaining in the Community Development Capital Initiative program has improved since receiving Treasury's investments.
However, since December 2014, some measures of financial health for these institutions have declined, such as the median for return on average assets, the GAO cautioned.
