Thursday, June 6, 2019

Bank Exposure Risk on CRE Lending Creeps Higher

Banks are enjoying near record low commercial real estate loan delinquency rates at 0.5 percent. Yet some industry observers are cautioning that there could be greater risk exposure emerging among some banks that has the potential to snowball into bigger problems in the event of a downturn.

CrediFi recently published a commercial real estate lending report that suggests that the banking system has much greater commercial real estate risk exposure than publicly recognized. Top concerns highlighted in the report are associated with levels of lending to “more opaque” property sectors, including retail and industrial. . . . more