Is Commercial Real Estate Too Small To Topple The Major Banks?

The following chart was put together by Capital Economics (via CRE Beat), and it purports to demonstrate that major banks can’t be toppled by bad commercial real estate loans, since as a percentage of total loan portfolios, the space just isn’t big enough.

On the other hand, the situation for small banks is much worse, as CRE accounts for 40% of bank portfolios. (via TrafficCourt)

 

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