After the bankruptcy of several major investment banks in the United States in the near future are expected to have difficulties with regional banks. It was pointed out by Bloomberg agency with reference to financial analysts.
This development is associated with a serious credit debt on the objects of commercial real estate in the country for a total of $ 1.5 trillion. Thus, 700 banks have already exceeded the recommendations of the regulator on the concentration of loans for commercial real estate, said chief economist of Apollo Global Management Thorsten Slok.
According to the economist, rising interest rates have made real estate less valuable in the domestic market. Now, their price could fall by another 40 per cent, which would bring local companies operating in this sector much closer to default.
“The source of problems for the industry will be commercial real estate, an area in which small and regional banks have become more important in recent years,” the publication said.
It notes that the recent rise in interest rates in the US has made many properties less valuable.
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