NYC Commercial Property Crisis Signals Hazards for Local Banks
- New York Community Bancorp, Signature confront downturn
- Biggest threat is from retail real estate loans, analyst says
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Before the pandemic emptied the city, few lenders benefited from the heady local real estate market as much as regional players New York Community Bancorp Inc. and Signature Bank.
Now they’re becoming a case study for potential trouble from a sudden downturn in the Big Apple’s property sector, and their share prices are suffering. New York Community Bancorp and Signature were among the top five most-active lenders in New York in the first half of the year, and almost all of their portfolios are tied to the area.