COMMERCIAL REAL ESTATE EXPOSURE: Bank first quarter earnings calls begin this week, and so will the endless number of questions for bank managements about their plans to grow deposits and to provide more detail on their commercial real estate loan exposure, particularly with respect to loans secured by office buildings. These exposures are very important to individual regional and community banks, but in aggregate don’t pose a lot of systemic risk.
Don’t worry. CRE problems don’t pose systemic risk to banks.
By Thomas K. Brown,
COMMERCIAL REAL ESTATE EXPOSURE: Bank first quarter earnings calls begin this week, and so will the endless number of questions for bank managements about their plans to grow deposits and to provide more detail on their commercial real estate loan exposure, particularly with respect to loans secured by office buildings. These exposures are very important to individual regional and community banks, but in aggregate don’t pose a lot of systemic risk.