An Analysis of the Impact of the Commercial Real Estate Concentration Guidance

This paper analyzes aspects of the interagency guidance issued in 2006, titled "Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices."1 The recent financial crisis and recession provide an opportunity to consider the relationship between the guidance and banks' commercial real estate (CRE) concentrations and performance during the downturn. This paper also analyzes how the share of banking institutions with high levels of CRE concentration, as defined in the guidance, has changed over time (part 2); documents the effect of CRE concentrations on bank failures (part 3); and studies CRE loan growth and bank capital strength since the 2006 issuance of the guidance (part 4).

Author: Office of the Comptroller of the Currenc

Publisher: Createspace Independent Publishing Platform

Publication Date: Jan 01, 2015

Number of Pages: 28 pages

Binding: Paperback or Softback

ISBN-10: 150339638X

ISBN-13: 9781503396388