When it comes to the reasons for the current credit crisis, bankers choose "lax underwriting standards," "political emphasis on increasing home ownership" and "lack of oversight of the mortgage industry" as the top three causes for the current credit crisis. The results are from Grant Thornton LLP's 16th Bank Executive Survey, conducted with Bank Director magazine.

Notably, only 15 percent of bankers selected the much-maligned fair value accounting standard as one of their three top choices as the main cause of the credit crisis, with only "mortgage fraud" having a lower response (11%).

"I think bankers understand that fair value accounting affects only a portion of the balance sheet and by itself it did not cause the current crisis," said Dorsey Baskin, a partner in Grant Thornton's National Professional Standards Group. "Nevertheless, efforts underway to revisit this and related issues such as 'other than temporary impairment' are very welcome."

What do you think are the main causes of the credit crisis? (Select up to three) 
 

• Lax underwriting standards -  4%
• Political emphasis on increasing home ownership - 46%
• Lack of oversight of the mortgage industry - 44%
• Inadequate understanding of risks - 40%Lack of oversight of Fannie Mae and Freddie Mac - 39%
• Credit default swaps - 18%
• Inappropriate or aggressive commissions for mortgage brokers - 18%
• Interest rates kept low for too long - 18%
• Use of the fair value accounting standard - 15%
• Mortgage fraud - 11%
• None of the above - 1%

Grant Thornton's Bank Executives Survey provides a snapshot of the banking world, presenting a compilation of opinions of industry leaders on the current state and future direction of the industry. In early November 2008, Bank Director magazine mailed questionnaires to a national sample of 3,000 chief executive officers and other senior officers of banks and savings institutions. A total of 339 completed questionnaires were returned for a response rate of 11.3 percent. Sixty-two percent of the respondents report assets of less than $500 million, with 38 percent reporting assets greater than $500 million. One-third of the bankers reported that their institutions are publicly held, 55 percent are with private corporations and 12 percent have mutual charters.