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Commercial Real Estate: US: Difference between revisions
→Exposure[2]
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== Exposure<ref>https://insight.factset.com/assessing-cre-exposure-across-the-financial-sector?utm_content=244750227&utm_medium=social&utm_source=twitter&hss_channel=tw-17473062</ref> == | == Exposure<ref>https://insight.factset.com/assessing-cre-exposure-across-the-financial-sector?utm_content=244750227&utm_medium=social&utm_source=twitter&hss_channel=tw-17473062</ref> == | ||
[[File:19-banks-ranked-by-projected-cre-losses-in-severely-adverse-scenario-of-2022-stress-test.png|thumb|267x267px|[https://insight.factset.com/assessing-cre-exposure-across-the-financial-sector?utm_content=244750227&utm_medium=social&utm_source=twitter&hss_channel=tw-17473062 banks-ranked-by-projected-cre-losses]]] | |||
=== Banks === | |||
Banks hold the majority of CRE mortgages by volume, with 61% of total CRE debt residing on their balance sheets (excluding multifamily). While smaller banks have more aggregate exposure to CRE, the exposure at larger, wholesale banks tends to be riskier. | Banks hold the majority of CRE mortgages by volume, with 61% of total CRE debt residing on their balance sheets (excluding multifamily). While smaller banks have more aggregate exposure to CRE, the exposure at larger, wholesale banks tends to be riskier. | ||
* CRE accounts for 24% of total industry loans outstanding, but CRE represents just 13% of total loans at large banks, while accounting for 44% at small banks | *CRE accounts for 24% of total industry loans outstanding, but CRE represents just 13% of total loans at large banks, while accounting for 44% at small banks | ||
* In the 2022 stress test, under the severely adverse scenario, CRE values decline by 40% over 2 years, and the aggregate losses for the banks tested represented 9.8% of total CRE loans | *In the 2022 stress test, under the severely adverse scenario, CRE values decline by 40% over 2 years, and the aggregate losses for the banks tested represented 9.8% of total CRE loans | ||
=== REITS === | ===REITS=== | ||
=== Insurance === | ===Insurance=== | ||
== References == | |||
==References== | |||
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