Federal Reserve Bank of San Francisco

RE Lending Risks Monitor: January 2011 Edition


February 2011

Real Estate Lending Risks Monitor

The economy and real estate markets show clear signs of stabilization; however, many 12th District banks may not see significant benefits for some time largely due to probable further weakening of CRE income property loan portfolios. This Monitor suggests that while many banks will see further recovery in 2011, others may weaken as net charge off rates on CRE loans (nonfarm nonresidential secured) may climb significantly in 2011 and 2012. Given high CRE concentrations on average, 12th District banks may be more impacted than banks in other areas of the country.

Download PDF (pdf, 204.67 kb)