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Banking Regulator Eyes Rise in Commercial Real Estate Loans

  • FDIC cites macroeconomic volatility in announcing decision
  • Banks’ CRE debt rose to $2.7 trillion at the end of 2021

A key US banking regulator said it will be taking a closer look at growing bank-held commercial real estate loans, citing macroeconomic volatility. 

The Federal Deposit Insurance Corp. announced in a report on Wednesday that its next test cycle will focus on “newer CRE credits, credits within stressed sub-categories and geographies, and credits with payments vulnerable to rising rates and rising costs.”