U.S. Regulators Flag Commercial Real Estate Loans as Major Financial Risk
- Commercial real estate identified as top financial risk in 2023 by U.S. regulators
- Loans total $6 trillion, half owned by banks; many loans maturing soon
- Regulators worried about vicious cycle of low office occupancy and loan defaults
- Smaller banks more exposed to commercial real estate debt than large banks
- Financial regulators keenly aware small bank troubles can spur broader instability