Data Analysis: More Banks at Risk of Failure as CRE Loans Reprice
More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures, according to a data analysis from a finance expert at 性视界传媒.
More than 60 of the largest banks in the country are at increased risk of failure due to their commercial real estate (CRE) exposures, according to a data analysis from a finance expert at 性视界传媒.
Sixty-seven banks have exposure to commercial real estate greater than 300% of their total equity, as reported in their first quarter 2024 regulatory data and shown by the screener.
鈥淭his is a very serious development for our banking system as commercial real estate loans are repricing in a high interest-rate environment,鈥 said , Ph.D., Lynn Eminent Scholar Chaired Professor of Finance in FAU鈥檚 . 鈥淲ith commercial properties selling at serious discounts in the current market, banks eventually are going to be forced by regulators to write down those exposures.鈥
, a part of , measures the risk to exposure from commercial real estate at the 157 largest banks in the country with more than $10 billion in total assets. Us