Late last year, U.S. federal regulators warned that about two dozen U.S. banks had commercial real estate loan portfolios that would merit greater scrutiny, a sign that financial institutions could face pressure to increase their reserves.
In that regard, the regulator said they would pay more attention to banks that quickly accumulated loans worth more than three times their total capital.
The three U.S. players, which include the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, indicated they would focus on banks’ portfolios that had grown at least 50% over the past three years. .
Among the banks that crossed this threshold, Valley National Bancorp, WaFD Inc. and Axios Financiero stand out.
Likewise, a Bloomberg review found that 22 banks with between $10 billion and $100 billion in assets have commercial real estate loans three times their equity. On the other hand, the figure was even higher among entities with less than $10 billion in assets, as 47 had enormous portfolios, of which 13 had grown rapidly.
According to commercial real estate data provider Trepp, banks will face approximately $560 billion in commercial property loan maturities by the end of 2025.
2024-02-16 01:25:11
#Key #exposed #regional #banks #commercial #property #loans
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