Sep
28

New Regulatory Crack Down on CRE Lending; Up to 2,000 Banks in Examiners’ Cross-Hairs

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– FinCriAdvisor.com

Regulatory scrutiny of commercial lending has ratcheted up, with examiners searching Call Reports for banks that exceed what once were suggested thresholds for CRE or ADC loan concentrations and demanding justification for it. A FinCri Advisor analysis reveals that nearly 2,000 banks fit that category, with FDIC examiners citing CRE lending in 15% of C&D orders this year vs. just 2.8% in 2008.

Banking analysts expect that is just the beginning. “Wait until next year when this thing starts to blow up,” says Bill Nayda, an economist and principal at Second Pillar Consulting in Glen Allen, Va., which specializes in capital management.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.fincriadvisor.com/2009-09-27/CREconcentrations
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