COP Analyzes Commercial Real Estate Losses and the Risk to Financial Stability

This story appeared in Bank Digest.

The COP has released its February oversight report, “Commercial Real Estate Losses and the Risk to Financial Stability.” The panel is deeply concerned that a wave of commercial real estate loan losses over the next four years could jeopardize the stability of many banks, particularly community banks, and prolong an already painful recession. According to the report, “community banks, unlike the largest Wall Street banks, face the greatest risk of insolvency due to mounting commercial real estate loan losses.”