Commercial Real Estate Largely Through the Free Fall

Regulators are keeping a close eye on bank portfolios where commercial property loans make up more than 300% of total risk-based capital, excluding loans where the borrower owns the office or plant it occupies. Some banks are having to purge commercial RE credits from their books because of various regulatory orders. It’s estimated that 20% to 40% of all U.S. banks are at or above those levels, creating opportunities for those who are below them. This article reports that there’s still room for CRE loans.