Bank Stress Tests Offer Weak Assessment of Tail Risks | Interview with Lisa Oake...
Wide Spread in Banks' CRE Default Rates | 40 percent of banks have CRE default rates of less than 1 percent as of Q1 2011. That is good news for policymakers concerned about the ongoing impact of non-performing property loans on the health and lending capacity of regional and community banks. Balancing this finding, a large minority of institutions still face serious challenges from elevated distress. In the extreme, 75 institutions with $13 billion in CRE loans report default rates of 20 percent or more.
Read the entire analysis on GlobeSt, in Dr Sam Chandan's Wide Spread in Banks' CRE Default Rates.

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