Banks, particularly regional ones, don't seem to in the best of shape. Aside from the handful of closures earlier this year, Moody's cut credit ratings of a group of smaller and regional banks and put a number of bigger banks on review for a potential credit downgrade on Monday. The total was rating actions on 27 banks.

Backing up that decision is the new information about banks charging off $19 billion in commercial real estate loans and consumer credit cards in the second quarter of 2023, according to a Financial Times report. It was an increase of nearly 17% quarter over quarter and 75% over 2022 Q2. Unfortunately, the information doesn't break out the split between credit cards and CRE loan, and so could lead to an incorrect conclusion.

At the end of June, there were $2.92 trillion in commercial real estate loans from commercial banks, according to data from the Federal Reserve in the so-called H.8 report August 4. The total of $19 billion would suggest a roughly 0.65% rate.