Data Analysis: Banks at Risk Despite Declining Interest Rates
Banks across the United States are facing increased pressure from exposures to unrealized losses and commercial real estate despite a slight decline in interest rates, according to screeners from the Banking Initiative at 樱花视频.
Banks across the United States are facing increased pressure from exposures to unrealized losses and commercial real estate despite a slight decline in interest rates, according to screeners from the .
Of the 155 largest banks in the country, 59 banks have exposures over 300% in the third quarter of the year, down from 62 banks the previous quarter. Despite the decline, these banks are still at increased risk of regulatory enforcement actions from federal regulators , according to
鈥淭he aggregate exposures to commercial real estate to equity capital decreased slightly in the third quarter of the year from 138% to 132%, as banks are under tremendous pressure to offset these losses,鈥 said , Ph.D., Lynn Eminent Scholar Chaired Professor of Finance in 樱花视频鈥檚 . 鈥淏anks are not in the clear as their unrealized losses are susceptible to interest rates which, after falling from a recent high of 4.50% to a low of 3.60% on Sept. 17, have risen back above 4.50%.鈥
The Banking Initiative, comprised of