Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 23, 1995                   TAG: 9505240018
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

IN BUSINESS

NASHVILLE, Tenn. - The government fund that insures deposits at savings and loan banks could go insolvent in less than two years, the chairman of the Federal Deposit Insurance Corporation said Monday.

The Savings Association Insurance Fund, or SAIF, ``is not in good condition and its prospects are not favorable,'' FDIC chairman Ricki Helfer said.

SAIF is significantly underfunded, with a balance of $1.9 billion, or 28 cents in reserves for every $100 of insured deposits, Helfer told the Tennessee Bankers Association.

In contrast, a separate fund for insuring deposits at the nation's commercial banks, called The Bank Insurance Fund, is healthy and should reach its funding target of $1.25 per $100 of deposits by June 30.

Proposals to lower the premiums banks pay to the fund have prompted some large savings associations to consider switching their charters to become banks. That would further jeopardize the S&L fund, Helfer said.

``If shrinkage increases ... the shortfall could occur as early as 1996 or 1997,'' Helfer said.

- Associated Press

Avis Construction receives ranking

Avis Construction Co. of Roanoke was ranked 34th in a listing of the country's 100 largest pre-engineered building contractors by the industry trade publication "Metal Construction News."

The ranking is based on tonnage of pre-engineered building components purchased during 1994. Last year, Avis purchased more than 2,500 tons of pre-engineered building components.

- Staff report