Powell: Commercial Real Estate Woes May Cause Some Small Bank Failures
• Powell warns that struggles in commercial real estate market will lead to some bank failures, but not big banks or overall system risk • Fed identifying banks with high commercial real estate exposure, especially office and retail loans • Powell says commercial real estate issue will take years to resolve • Recent NY Community Bancorp troubles highlighted apartment loan risks • FDIC chair notes non-current rates for non-owner occupied commercial real estate loans at highest since 2014