How to manage commercial real estate risk in the post-pandemic era

Description

Abstract: Community banks, by their very nature, tend to have higher concentrations of commercial real estate (CRE) loans than larger institutions. This article explains that any concentration in certain types of loans, borrowers or collateral exposes banks to heightened risks, so banks need to be proactive in managing CRE concentration risk. It also points out that a confluence of recent trends has elevated CRE risks for many banks.