As banks are a pillar for commercial real estate lending, their travails become those of investors, owners, and developers. And those problems are racking up.
There was news last week of bank deposits having contracted year-over-year in the first half of 2023. According to S&P Global Market Intelligence, the change was a 4.8% contraction, the first time in keeping records since 1994 that there was any drop at all. Banks large and small were hit.
Now the Wall Street Journal has pointed out that a "surge in interest rates likely worsened unrealized losses on bonds and loans held by U.S. banks in the third quarter, further straining their balance sheets as they face pressure to pay more to keep depositors."
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