Big commercial real estate downturn could sink 300+ banks: Report
June 9, 2023 | Kyle Campbell | American Banker
A sharp downturn in commercial real estate performance could have a big impact on the banking sector, but not big enough to destabilize the financial system, according to analysis from one of the top real estate economists in the country.
More than 300 banks have enough commercial real estate loans on their books to see their Tier 1 capital wiped out under a worst-case scenario, Richard Barkham, chief economist and head of research at CBRE, said this week during a conference hosted by the National Association of Real Estate Editors.