Federal Reserve Chair Jerome Powell has highlighted concerns about the commercial real estate (CRE) sector, indicating that while the risk is manageable and concentrated in small and medium-sized banks, there is an expectation of bank failures due to CRE exposure. This comes amid reports of overdue CRE loans reaching their highest levels since 2014 and late credit card payments peaking since 2011. Powell's comments were made in the context of strengthening bank supervision following the failures of Silicon Valley Bank and other regional lenders last year. The Federal Deposit Insurance Corporation (FDIC) has also noted these financial strains, pointing to a precarious situation for the banking sector.
Federal Reserve Chair Jerome Powell told senators on Thursday that efforts are underway at the central bank to strengthen its bank supervision following last year's failures of Silicon Valley Bank and other regional lenders. https://t.co/LhbHs00HGK
Federal Reserve Chair Jerome Powell said he expects to see some banks fail due to their exposure to the commercial real estate sector https://t.co/pAD53y2m3Z https://t.co/1L92ntl31G
Fed Chair Powell joined a chorus of US officials who have argued that mounting bad commercial real estate loans don’t pose a risk to the overall banking system https://t.co/wJXqq5mqCs
POWELL: I expect more bank failures as a result of CRE exposure, but not big banks. Small and medium banks have the most exposure.
Powell says he now expects there to be bank failures from CRE Nothing to see here
Powell expects bank failures from CRE! $xlf $kre $nycb $iwm https://t.co/N04ieq08hu
🔴 FED'S POWELL: I EXPECT THERE TO BE BANK FAILURES FROM CRE. BUT NOT BIG BANKS, THERE ARE MORE SMALL AND MEDIUM SIZED BANKS WITH BIGGEST EXPOSURE.
❖ POWELL: EXPECTS THERE TO BE BANK FAILURES FROM CRE
* FDIC SAYS LATE CREDIT CARD PAYMENTS ARE HIGHEST SINCE 2011 @FDICgov @JohnSpall247 https://t.co/YC7PcVB8Wh
Overdue CRE loans highest since 2014! $xlf $kre $nycb https://t.co/ME6DG9KIrx
FDIC SAYS OVERDUE CRE LOANS ARE HIGHEST SINCE 2014 FDIC SAYS LATE CREDIT CARD PAYMENTS ARE HIGHEST SINCE 2011
“Hundreds of banks” $nycb $kre $xlf https://t.co/Jtx2uMSS4e
Who is going to shore up the next 50 regional banks? $kre $xlf
Federal Reserve Chair Jerome Powell says that commercial real estate risk is manageable, and concentrated in small and medium sized banks https://t.co/Eg09BzWgtJ https://t.co/UM0GQYm3Ch