Banks have seen a lot of concerns over the last few months by depositors, investors, and regulators. Multiple institutions have been forced when it became clear that rising interest rates undermined the value of their assets. Depositors pulled their deposits, concerned about banks' liquidity. That lead to insolvency and closures. A study suggested that increased monetary tightening by the Federal Reserve could shutter 186 banks.
But according to experts from rating agencies to long-experienced CRE professionals, they Fed doesn't have to lift a single finger. A similar cycle might happen over commercial real estate loans.
According to Fitch Ratings, banks with less than $100 billion in assets — most of them — are "more susceptible to deteriorating commercial real estate (CRE) fundamentals than larger banks."
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