This is a good time for bank risk managers and bank regulatory examiners to evaluate the effects of a deepening retail crisis on the financial services sector.
Construction lending could make a comeback if bankers persuade Congress to reform capital and other complicated rules on so-called high volatility CRE loans. But will regulators go for it?
Stonegate Bank in Florida figured its balance sheet was too small and undiversified to stay independent. But it was choosy in approaching potential buyers and aggressively scrutinized the lead bidder’s loan book.
Banks are increasingly tightening lending standards for commercial real estate loans and are likewise seeing a drop-off in demand, according to a report released Monday by the Federal Reserve Board.
Vacancies and rent-slashing have some banks worried that certain markets are overheating, but others say the decline in nonperforming loans is a sign the sector has never been healthier.
