The Federal Reserve Bank in Washington DC The Federal Reserve Bank in Washington DC

WASHINGTON, DC—Banks were duly given notice last December by a troika of regulators: the Federal Reserve’s Board of Governors, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. They said they would keep a close eye on commercial real estate lending in 2016 as they were concerned about the loosening underwriting standards of these loans.

Several weeks later, as banks report their earnings for the first quarter of 2016, it is hard to see what impact the warning had on CRE lending. Banks not only continued to lend in the sector, but reading through the earnings reports and investor calls, one gets the sense that banks would have lent even more if the market weren’t so competitive.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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