The Real Estate Crisis Looming Over Banks

February 07, 2024

Fears are now rising among investors over the United States’ distressed commercial real estate sector. The stock has plummeted roughly 60 percent in the past week after the lender reported dismal results, especially stemming from its exposure to souring commercial real estate loans. The shift in working practices after the height of the coronavirus pandemic has roiled the commercial real estate market and lenders could face a “maturity wall” of as much as $1.5 trillion in commercial real estate loans set to come this year and next. Shares in Japan’s Aozora Bank and Switzerland’s Julius Baer have sunk in recent weeks after both disclosed risks from souring commercial real estate loans. The post The Real Estate Crisis Looming Over Banks appeared first on New York Times.