Detailed analysis of December 2023 bank regulatory data suggests that unrealised interest rate losses in the banking system amplify banks’ true commercial real estate (CRE) loan concentrations making CRE exposures much more consequential than traditional supervisory CRE loan concentration measures suggest. Taken together, weak demand for several types of commercial properties, sustained unexpectedly high interest rates and the concentration of CRE loans in many bank portfolios may magnify the risk of many financial institution’s uncollateralised exposures to bank counterparties. Read the full paper here.
Authors
- Pages
- 5
- Published in
- United States of America
Table of Contents
- Commercial Real Estate Exposure and Bank Counterparty Risk 1
- Abstract 1
- Paul H. Kupiec 2
- Senior Fellow 2
- Latest Work 2
- Can the Federal Reserve Buy Gold? Should It? 2
- Transparency in Global Governance 2
- A US Bitcoin Reserve Would Do Much for Bitcoin and Little for Taxpayers 2
- Tags: 2
- Related 2
- A Realistic Assessment of Bank Capital Adequacy vs the Federal Reserve Board’s Stress Test Fiction 2
- Commercial Real Estate and Bank Systemic Risk 3
- The Commercial Real Estate Crisis Hiding in Plain Sight 4
- Systemic Risk and Unrealized Losses in the Banking System 4
- About 4
- Scholars 4
- Policy Areas 5
- Contact 5
