CRE Lending Pullback on Horizon?
Anxiety about an economic downturn is everywhere this fall. And if one hits, expect both traditional financial institutions and private lenders to take a step back from commercial real estate.
Anxiety about an economic downturn is everywhere this fall. And if one hits, expect both traditional financial institutions and private lenders to take a step back from commercial real estate.
Rockland Trust built its sizable position in the Eastern Massachusetts banking market on 20 years of successful acquisitions. But these days, it’s focused on demonstrating it can grow on its own.
In a year that saw banks take up a larger chunk of the commercial real estate lending pool, local and regional banks were among the top local CRE lenders.
According to a new report from CBRE and data from The Warren Group, the commercial real estate market continues to show signs of improvement.
Prolonged high interest rates may drive credit risk at banks with high commercial real estate exposures, according to a new survey by Moody’s.
The new chief financial officer of M&T Bank has four focus areas he intends to work on to polish operations in the regional bank, he said at a recent financial conference.
The bankers have spoken: Credit standards were tightened and demand for loans was weak in the second quarter of the year, trends that will continue towards the second half of the year.
The Federal Reserve is getting some unwanted help in its drive to slow the U.S. economy and defeat the worst bout of inflation in four decades: a cutback in bank lending.
Amid the rapid rise in interest rates and economic uncertainties, community banks continue to close new commercial real estate loans, including for multifamily projects looking to address the region’s housing needs. But the money isn’t flowing as freely as it might once have.
Local lenders have emerged as big winners from the 65 percent year-over-year- growth in commercial mortgage volumes statewide this year. But the risk of a recession is causing some to grow more cautious.
With banks holding record volumes of commercial real estate loans, the FDIC plans to increase its focus on CRE transaction testing during its next cycle of bank examinations.
As the revitalization of Worcester brings new developments, housing and even a minor league ballpark to the city, community banks in the region have entered 2022 optimistic about potential commercial lending opportunities.
As economic conditions improve and interest rates remain low, commercial real estate has provided lenders with opportunities for growth and new relationships with developers.
A recent change in federal regulation could spur more commercial real estate lending at smaller banks.