German banks, including Deutsche Bank and Deutsche Pfandbriefbank (PBB), are facing challenges due to their exposure to the US commercial real estate market. Deutsche Bank's provisions for losses in US commercial real estate were more than four times bigger in the last quarter, with concerns over refinancing posing the greatest risk. The European Central Bank (ECB) is signaling to lenders that they may face higher capital requirements if they have insufficient risk management for commercial real estate. Barclays analysts suggest that covered bonds and deposits can offer a lifeline for German banks amidst the spreading US commercial property downturn.
"The wounds from exposure to US commercial real estate are not just coming from New York Community Bank and Aozora in Japan. Deutsche Pfandbriefbank, or PBB, a German real estate lender yesterday announced that they added to their loan loss provisions blaming 'persistent…
The ECB is signaling to lenders that they may face higher capital requirements if they have an insufficient handle on risks they face from commercial real estate, sources say https://t.co/HXTIluPnK0
⚠️ GERMAN BANK PBB SHARES CONTINUE SLIDE AMID REAL ESTATE TROUBLES (Reuters) Deutsche Pfandbriefbank's (PBB) shares continued their decline on Friday amid concerns over its exposure to the U.S. commercial real estate market. The decline comes a day after the bank sought to… https://t.co/3ZFO3ZrdlC
Deutsche Bank, $DB, provisions for losses in US commercial real estate were more than four times bigger in the last quarter, as it warned that refinancing poses the greatest risk to the struggling sector, per Bloomberg.
Europe’s banks remain in the focus of investors as analysts assess the risk of contagion from the troubles in commercial real estate markets https://t.co/OtzFkTqw1s
For German banks at the forefront of a spreading US commercial property downturn, covered bonds and deposits can offer a lifeline, according to Barclays analysts https://t.co/nCyvaLYJxN