A global pandemic, a struggling economy and a new administration throw wrenches into risk managers plans for the year ahead.
Browsing: Commercial real estate
The FDIC today released a large-scale Community Banking Study that examines community bank performance between year-end 2011 and year-end 2019.
Rising corporate debt, vulnerabilities in short-term wholesale funding markets and commercial real estate were among several risks flagged by the Financial Stability Oversight Council in its annual report released today. The reported noted that “risks to U.S. financial stability remain elevated compared to last year,” and that “the global outlook for economic recovery is uncertain, depending on the severity and the duration of the ongoing pandemic.”
Loan demand and standards for lending began to stabilize in the third quarter after demand weakened and standards tightened during the economic freefall of the second quarter.
The share of commercial real estate loans 30+ days delinquent jumped from 0.9% in April to 5.1% in June. Though that share eased to 3.2% in October, the delinquency rate remains 2.3 percentage points above its April levels.
ABA Chairman Jim Edwards takes office at an unexpectedly difficult moment—and with a uniquely suited portfolio of skills.
Commercial real estate has faced substantial headwinds from stay-at-home orders and changing consumer behavior, and in many cases CRE has not received the same level of support available to consumers and small businesses.
A conversation with Wendy Cai-Lee of de novo Piermont Bank on the unique needs of multigenerational family firms.
While the U.S. economy is showing positive signs that a recovery is underway, Federal Reserve Vice Chairman for Supervision Randal Quarles today cautioned that “risks remain weighted to the downside.”
While it is too early to assess the full effects, COVID-19 will permanently reshape commercial real estate in the U.S.