Commercial real estate’s link to smaller banks in the U.S. is vulnerable and has not gotten enough attention after recent strain in the banking system,...
Commercial real estate’s link to smaller banks in the U.S. is vulnerable and has not gotten enough attention after recent strain in the banking system, according to Capital Economics.
“But in a worst case scenario it’s possible that a ‘doom loop’ develops between smaller banks and commercial property, in which concerns about the health of these banks leads to deposit flight,” warned Shearing. That, in turn, would cause “banks to call in commercial real estate loans, which then accelerates a downturn in a sector that forms a key part of its asset base, which intensifies concerns about the health of the banks and thus completes the vicious cycle.
Pullback in lending? The commercial real-estate market includes industrial and retail properties as well as offices and apartments, according to Capital Economics. In Shearing’s view, lending to commercial real estate may tighten as smaller banks experience pressure on their deposit base following the run on failed Silicon Valley Bank earlier this month.
Commercial-property lending accounts for about 40% of all loans by smaller U.S. banks, according to Capital Economics. Smaller U.S. banks are those defined by the Federal Reserve as being outside the 25 biggest by asset size, the note says.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Billionaire Barry Sternlicht Warns of Hard Landing — Says 'Economy Is Going to Implode' – Economics Bitcoin News'The economy is going to implode,' said Billionaire Barry Sternlicht, chairman and CEO of Starwood Capital Group. bankingcrisis Fed inflation
Weiterlesen »
Professor stunned by ChatGPT's progress on economics test in 3 monthsA professor says he's stunned that ChatGPT went from a D grade on his economics test to an A in just 3 months
Weiterlesen »
Unstoppable Doom Patrol #1 Preview: Under New ManagementThe Doom Patrol is back and under new management in the wake of Lazarus Planet in this preview of Unstoppable Doom Patrol 1.
Weiterlesen »
Venom: Lethal Protector II #1 Preview: Venom vs. DoomAfter exploring a subway terminal during a winter storm, Venom discovers a portal to Narnia in this preview of Venom: Lethal Protector II 1. No, wait, it's Latveria.
Weiterlesen »
Exclusive Batman: The Doom That Came to Gotham Clip Previews DC MovieBatman: The Doom That Came to Gotham is out digitally, on Blu-ray and 4K UHD on March 28, 2023, and ComingSoon has an exclusive clip.
Weiterlesen »
Lovecraftian Forces Emerge In Batman: The Doom That Came To Gotham ClipScreen Rant presents an exclusive new clip from BatmanTheDoomThatCameToGotham, featuring Bruce Wayne (David Giuntoli) and a very altered Grendon (David Dastmalchian). The new animated DC movie comes to Blu-ray, 4K & digital March 28 through WBHomeEnt:
Weiterlesen »