282 Banks at “risk of failure” from commercial real estate and Fed rate hikes.

by
Sharing is Caring!

Consulting firm Klaros Group analyzed approximately 4,000 U.S. banks and found that 282 banks face a dual threat. These threats stem from both commercial real estate loans and potential losses tied to higher interest rates. It’s important to note that the majority of these banks are smaller lenders with less than $10 billion in assets. While most of these banks aren’t insolvent, they are experiencing stress. Consequently, there may be fewer bank failures, but communities and customers could still be indirectly affected by reduced investments in areas like new branches, technology, and staff. If a failing bank is insured by the FDIC, depositors will be protected up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

See also  Fed injects $100 million into banking system as liquidity crisis worsens. If unemployment rises in Q1, we face dotcom-style valuations and real estate risks.
See also  Banks' balance sheets face reckoning; CRE collapse looms, Q2 crisis predicted in Europe.


339 views