Regulators Keep Close Watch on Regional Banks After NYCB Losses
• U.S. bank regulators conducted health checks on regional lenders after NYCB posted losses, cut dividends • Regulators inquired about liquidity, deposit flows, customer worries • Conversations show regulators remain concerned about health of smaller banks after failures in 2022 • NYCB provisions related mostly to commercial real estate (CRE) loans - small banks have high CRE concentration • Regulator questions also focused on bank liquidity, capital positions to ensure resilience