ECB to Seek More CRE Loan Provisions From Some German Banks
- Regulator has been reviewing exposures for three years
- German lenders among those most affected by ECB’s demands
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The European Central Bank will soon push several German lenders to build up higher reserves against property loan defaults, in a move that would cut into their profits.
Banks with large portfolios of commercial real estate loans such as Deutsche Pfandbriefbank AG and some regional lenders jointly known as Landesbanken are one focus of the ECB’s effort, though it’s not clear which will ultimately face demands for higher provisions, people familiar with the matter said.