The Federal Reserve is stepping up supervisory work with community and regional banks that have significant commercial real estate concentrations, Fed Governor Lisa Cook said.
Cook: Fed stepping up CRE supervision
May 09, 2024 / By ICBA
The Federal Reserve is stepping up supervisory work with community and regional banks that have significant commercial real estate concentrations, Fed Governor Lisa Cook said.
The Federal Reserve is stepping up supervisory work with community and regional banks that have significant commercial real estate concentrations, Fed Governor Lisa Cook said.
Details: Speaking in Washington, Cook said CRE loans make up roughly 5% of total assets at large banks and around 30% of assets at smaller banks. Nevertheless, Cook cited the overall resilience of the banking sector, the solid state of bank profitability, and the stability of deposit flows.
Background: The FDIC in December issued an advisory to reemphasize the importance of strong capital, appropriate credit loss allowance levels, and robust credit risk-management practices for institutions with commercial real estate concentrations.
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