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US banks' commercial real estate loan worries linger after latest tumble

Tan KW
Publish date: Thu, 04 Jul 2024, 06:28 PM
Tan KW
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Several US regional and mid-sized banks continue to face the squeeze from high exposure to the commercial real estate (CRE) sector that has been roiled by higher-for-longer interest rates and empty office buildings.

On Wednesday, First Foundation's shares slumped after the Texas-based lender with a huge portfolio of multifamily real estate loans disclosed a US$228 million "unexpected" capital raise at a steep discount.

Below is a list of US banks with some of the largest ratio of CRE loans to Tier 1 capital plus allowance for loan losses, as of March 31, according to S&P Global Market Intelligence.

 


  - Reuters

 

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