CRE loans constituted only 7% of the total assets of the top 100 banks compared with 26% of the total assets of the remaining banks.
Banks continue to deal with nonperforming commercial real estate (CRE) loans, a legacy of the recession. At most banks, these loans remain at elevated levels.
In general, the smaller the bank, the greater the CRE exposure.
Of the US$10.9 trillion of assets of the top 100 banks at the end of Q3 2011, CRE loans accounted for US$784 billion.
Likewise, the CRE loans held by the remaining banks totaled US$750 billion. The difference is that CRE loans constituted only 7% of the total assets of the top 100 banks compared with 26% of the total assets of the remaining banks.
US Bank CRE loans, Q3 2011
Percentage of balance sheet
|All banks(7.445 banks)||US$13.8 trillion||US$1.53 trillion||11%|
|Top 100 banks||US$10.9 trillion||US$784 billion||7%|
|Remaining banks (7,345 banks)||US$2.9 trillion||US$750 billion||26%|
Generally, the CRE loans on the books of the top 100 banks, which include some of the world’s largest banks, tend to be on large, high-profile properties such as office towers, regional shopping centers and high-rise apartments in gateway cities and other leading markets in the US.
The remaining banks are regional or community banks that have made thousands of construction loans and acquisition and development loans on small office buildings, retail establishments, apartments or condominiums, motels, movie theaters and other real estate in regional or local markets across the US.
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