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Commercial Real Estate Loan Exposure Raises Concerns for Banks

Higher interest rates and vulnerable assets could spell trouble for banks with commercial real estate loan exposure, according to ratings agencies and CRE veterans. So reports GlobeSt.com.

Fitch RatingsFitch Ratings has warned that banks with below $100 billion in assets are “more susceptible to deteriorating [CRE] fundamentals than larger banks.”

While the problems in the office market are widely discussed, Real Capital Solutions CEO Marcel Arsenault told GlobeSt.com that multifamily could be a risk too, because of what he sees as overbuilding that will result in higher vacancy rates.

Read the full article from GlobeSt.com.

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