In today’s briefing:
- US Banks’ Commercial Real Estate Exposure: Not the Same as 2008
US Banks’ Commercial Real Estate Exposure: Not the Same as 2008
- Loans & leases remain the largest component of bank credit. Tighter monetary conditions are impacting loan quality as testified by rising delinquency rates for auto loans and credit cards.
- Focus has shifted to the high exposure of smaller banks to commercial real estate loans. Rising CMBS delinquencies are being viewed as potential signs of future trouble for banks.
- Higher exposure to multi-family loans should help banks due to their historically lower delinquency rates compared to construction and development loans that were much more important in 2008.
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