A $560 Billion Property Warning Hits Banks From NY to Tokyo

Lenders face debt maturities, lower values after thaw in deals

The US commercial real estate market has been in turmoil since the onset of the Covid-19 pandemic. But New York Community Bancorp and Japan’s Aozora Bank Ltd. delivered a reminder that some lenders are only just beginning to feel the pain.

Banks are facing roughly $560 billion in commercial real estate maturities by the end of 2025,

Regional lenders in particular are more exposed to the industry, and stand to be hit harder than their larger peers because they lack the large credit card portfolios or investment-banking businesses that can insulate them.

The KBW Regional Banking Index slumped 6% Wednesday, its worst performance since the collapse of Silicon Valley Bank last March. The gauge dropped an additional 3.2% Thursday.

Bloomberg 1 February 2024



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