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Home ABA Banking Journal Podcast

Podcast: The real story on CRE risk management

February 11, 2025
Reading Time: 2 mins read
Fed Survey: Banks tighten policies on commercial real estate lending

On the latest episode of the ABA Banking Journal Podcast — presented by R&T Deposit Solutions — ABA’s Jeff Huther and Sharon Whitaker rebut a false narrative about how banks are managing commercial real estate credit risk. Expanding on a rebuttal to a New York Fed paper, they explore why measures of distress and undercapitalization used by the New York Fed and some in the media are inconsistent with common definitions and ignore bank-borrower relationships, accounting principles and valuation techniques.

“We’re now almost three years past the last shock to the sector, and people have had a lot of time to kind of think through how to deal with this and what the implications are for credit risk,” says Huther. “We’re in a situation where ” extending and pretending” is just not the right way to describe the condition and market.”

  • If you can’t see the audio player above, click here to listen to this week’s episode.
  • Read the ABA DataBank post.

This episode is presented by R&T Deposit Solutions.

In this episode:

Jeff Huther
VP, Economist
ABA Office of the Chief Economist
Sharon Whitaker
VP, Real Estate Finance
ABA

 

Tags: ABA Banking Journal PodcastCommercial real estate
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