Real Estate
EU Commercial Property Drama Has Years to Play Out, Donnery Says
- Market has seen ‘a very big shock,’ Irish central banker says
- Banks should take ‘very robust’ approach to provisioning
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The turmoil on commercial real estate will likely take years to play out, a top financial regulator warned, indicating pressure on banks to prepare for losses won’t ease any time soon.
“There’s been a very big shock,” Sharon Donnery, a member of the European Central Bank’s Supervisory Board, said in an interview in Dublin about the asset class. “I think it’s going to be a couple of years” until that is digested.