Press Releases

Economic Brief

Aug. 2, 2017

Richmond Fed Research Explores Surge in Commercial Real Estate Lending

The latest Economic Brief from the Richmond Fed suggests that some banks with high concentrations of commercial real estate (CRE) loans could be especially vulnerable to an economic downturn. In addition to holding high concentrations of CRE loans, banks potentially at risk exhibit rapid CRE loan growth and rely heavily on illiquid sources of funding, according to the brief.

The authors of the brief conclude, however, that banks’ overall risk exposures related to CRE lending do not appear to be as elevated as they were before the Great Recession.

The Richmond Fed’s Economic Brief series provides web-exclusive essays on current economic issues and trends. Sign up to receive an email notification when a new essay is posted.

 

The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.

###

Contact Us

Jim Strader
(804) 697-8956
(804) 332-0207 (mobile)

Laura Fortunato
(804) 697-8196
(804) 698-0927 (mobile)