CRE Loan Performance is Strong: McWilliams

Nov 07, 2019

While banks hold record amounts of commercial real estate loans, performance is strong, FDIC Chairman Jelena McWilliams said. Speaking at an FDIC CRE conference in New York, McWilliams said banks hold roughly $2.4 trillion in commercial real estate loans, eclipsing the 2008 peak and accounting for more than 61 percent of outstanding CRE loans.

McWilliams nevertheless warned that CRE holds challenges for the banking industry, including potential boom-and-bust cycles and asset-liability mismatches. "This evolution provides opportunity, but it also brings uncertainty to the lending environment," she said.