Podcast: The commercial real estate state of play
ABA’s Dan Brown and Sharon Whitaker discuss community bank exposures to commercial real estate and how community banks are managing shifts in the CRE sector.
ABA’s Dan Brown and Sharon Whitaker discuss community bank exposures to commercial real estate and how community banks are managing shifts in the CRE sector.
Citing concerns about recent trends in commercial real estate, the FDIC issued guidance to “reemphasize” the importance of strong capital and robust credit risk-management practices for financial institutions with CRE concentrations.
Middle market businesses don’t get all the love or the press, but they are critically important nonetheless. Here’s the outlook for this sector going into 2024.
The worst-case commercial real estate scenarios are unlikely to pan out. Here’s why.
“Capital investment has surprised a great bit of our economy and the business community,” says…
“Often, economic change occurs at this level of the economy,” says Umpqua Bank EVP Richard Cabrera about the middle market of the commercial sector. “While economic concerns still linger, there’s tremendous optimism.”
In light of the August 2023 downgrade by Moody’s of several US banks, as well as commentary by Fitch Ratings on the banking sector, ABA’s Office of the Chief Economist is providing a brief assessment of the rating agency comments and highlighting critical flaws in some of the assumptions impacting their analyses.
Given the diversity of the CRE sector, banks should not be painted with the broad brush of urban office space exposures.
Meet Saleem Iqbal, ABA’s Community Bankers Council chair.
Economic uncertainty and rising borrowing costs have increased risk in both the residential and commercial real estate sectors, which could increase risks to U.S. financial stability, the Financial Stability Oversight Council warned in its annual report.