Study: Hundreds of Small Banks Still at Risk Due to CRE Loans

Regional banks are still under pressure because of their exposure to commercial real estate loans. A new study shows that almost 300 banks are at risk of failure if they don't get an infusion of cash or merge with another institution. And the risk grows as time drags on with higher short-term interest rates.

Consulting firm Klaros Group analyzed about 4,000 banks. It found that 282 or more than 7% of the banks in the study are under stress, and that most of the ones at risk are community banks with less than $10 billion in assets. But it also found that 16 regional banks holding $10 and $100 billion in assets are also at risk...

...You can read more by following links in the show notes below or at newsforinvestors.com. And please join our network of real estate investors by signing up for a free membership at our website. And please subscribe to this podcast so you won't miss an episode. Thanks for listening! Kathy Links: https://www.bisnow.com/national/news/capital-markets/study-finds-282-community-and-regional-banks-at-risk-for-collapse-123398 https://www.cnbc.com/2024/03/19/where-cracks-in-the-banking-sector-may-appear-without-more-ma.html https://www.wsj.com/articles/block-capital-ones-merger-with-discover-elizabeth-warren-1a83a50e