Nearly a third of California's 127 registered banks have property debt over 300 percent of their capital, the highest among U.S. states. Banks in other states like New Jersey, Rhode Island, and Washington also have significant exposures.
Regulators like the Federal Reserve are focused on lenders with commercial real estate holdings, particularly in regions anticipating price drops. Banks are facing challenges as property values decline and owners struggle to refinance.
#california-banks #commercial-real-estate-exposure #regulatory-oversight #property-value-declines #banking-sector-challenges
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