Finance
Real Estate Unlikely a Systemic Problem for Banks, PNC CEO Says
- The issue is more significant for smaller lenders: Demchak
- He says such banks tend to have higher property concentration
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Troubled commercial real estate debt could lead to problems for some small lenders, but isn’t likely to be an issue for the broader US banking industry, said William Demchak, chief executive officer of PNC Financial Services Group Inc.
Demchak, who leads one of the biggest US banks by assets, said that smaller financial firms tend to have higher concentrations in real estate than larger lenders. And their lending focus tends to be on older Class B and C properties, he said in a Bloomberg Television interview Friday.