Commercial real estate exposure poses one of the greatest threats to the stability of regional banks since the 2008 financial crisis. The collapse of the office market has pushed commercial real estate debt to a critical threshold.
Because with shrinking tenant demand, 1 in 3 office landlords are at risk of defaulting on loans they can no longer service.
Now, if nothing changes, major financial institutions may be forced to absorb the bad debt from the commercial real estate loans. And while lowering interest rates may provide temporary relief for the commercial property sector, CRE exposure remains a significant threat.
So read on to learn:
- Why non-recourse loans could lead to a bank bailout
- Which 5 banks have the largest commercial real estate exposure
- Why this should be so disturbing for average Americans
|
"The top five banks had a combined commercial real estate loan volume of nearly $500 billion as of June 30. Loan volume increased at several of the following 20 banks over the previous year, with one reporting a rise of 22.0%." -American Banker |
This content is for members only
Wondering where to begin?
Related Content
Subscribe to Our Learning Center
