Valerie Zucker’s Post

When it comes to the ongoing #CRE challenges facing the #banking industry, the key is preparation… not panic. My colleague Tom Collins shares his perspective with Fortune. Reach out if you’d like to hear more about what West Monroe is seeing in the market and how we are helping our clients leverage #data, #relationshipbanking and #riskmanagement to better prepare in the midst of this tumultuous market.

First quarter #earnings season is getting started, with the largest banks reporting first. In the wake of last year’s regional banking crisis and the potential new normal of higher-for-longer interest rates, all eyes are on the health of the U.S. financial system. With #commercialrealestate (CRE) still searching for its bottom, losses related to CRE exposures are of particular concern for the banking industry. Read on in our #chartoftheweek by Jessica Noviskis, CFA and Grace Colson at the link.

Great insight from The Bank of Tampa CEO Corey Neil on how the rate cut will impact consumers, from Valley Bank's Joseph Chillura on how it will impact Commercial Real Estate and investors, and SouthState Bank's John Corbett on how the cut will impact the banking industry as a whole. Read Christina Georgacopoulos story for Tampa Bay Business Journal here #ratecut #bankingnews

CRE. This headline catches me a little on the nose. CRE might be an issue, ya think? I keep asking, what will be the spark? We have all read about the 20-30% (or more) declines when forced to sell a property. What turns strategic sellers into forced sellers? "Treasury Secretary Janet Yellen said that a combination of higher vacancy and interest rates in commercial real estate will hit the banking sector" "There are some institutions that will face stresses from commercial real estate that we know was significantly impacted, particularly office buildings by the pandemic," Yellen said. "Interest rates are higher, loans will need to be refinanced in an environment with higher interest charges, lower valuations and rising vacancy rates, so for some banks this will be a concern. But on balance, I think the system is well capitalized." #cre #regulation #credit #lending

Losses in commercial real estate may leave financial institutions “quite stressed” as loans come due and and interest rates hover at a 23-year-high, Treasury Secretary Janet Yellen said Tuesday in testimony to the House Financial Services Committee. The higher rate environment and other factors such as high vacancy rates in certain cities is "going to put a lot of stress on the owners of these properties,” Yellen said. “So the banking agencies are very focused on helping the banks manage through these situations.” #interestrates #commercialrealestate #inflation https://lnkd.in/eBZMKgzV

More than a year out from the regional banking failures of 2023, we expect negative press reports to continue as the true financial impact will likely stretch over a period of years. The silver lining is that banks and other lenders have time to address underlying issues. https://lnkd.in/ezRyp9km

More than a year out from the regional banking failures of 2023, we expect negative press reports to continue as the true financial impact will likely stretch over a period of years. The silver lining is that banks and other lenders have time to address underlying issues. https://lnkd.in/gXUMaqRr

Are we standing at the precipice of a banking crisis triggered by the commercial real estate downturn? 📉 This question demands urgent, informed insights.💡 Join us for an information-packed webinar led by Neal Bawa as he navigates the intricate interplay between banking and real estate. By tuning in, you’ll also learn valuable information about certain asset classes that shine as beacons of stability and potential growth. 🧐 Are Banks Facing a Crisis from the Commercial Real Estate Downturn? 🤔 Register for this webinar today! 👉https://lnkd.in/gupeZxbR Neal delivers a revealing analysis, shedding light on over 280 banks at risk due to their significant exposure to commercial real estate loans. He pinpoints the most vulnerable institutions and delves into the strategies they're employing to manage and reduce this risk. Neal's presentation will explore: ✅ The FED’s cautious dance with inflation and interest rates and the delicate but hopeful economic outlook 🔮 ✅ The banking sector's balancing act and a precarious situation for the challenging commercial real estate landscape ⚖️ ✅ Why the era of cheap money is officially over 🥲 ✅ Why multifamily remains a shining star despite economic conditions 🌟 Register your spot today! 👉https://lnkd.in/gupeZxbR

Are we standing at the precipice of a banking crisis triggered by the commercial real estate downturn? 📉 This question demands urgent, informed insights.💡 Join us for an information-packed webinar led by Neal Bawa as he navigates the intricate interplay between banking and real estate. By tuning in, you’ll also learn valuable information about certain asset classes that shine as beacons of stability and potential growth. 🧐 Are Banks Facing a Crisis from the Commercial Real Estate Downturn? 🤔 Register for this webinar today! 👉https://lnkd.in/gNydjS72 Neal delivers a revealing analysis, shedding light on over 280 banks at risk due to their significant exposure to commercial real estate loans. He pinpoints the most vulnerable institutions and delves into the strategies they're employing to manage and reduce this risk. Neal's presentation will explore: ✅ The FED’s cautious dance with inflation and interest rates and the delicate but hopeful economic outlook 🔮 ✅ The banking sector's balancing act and a precarious situation for the challenging commercial real estate landscape ⚖️ ✅ Why the era of cheap money is officially over 🥲 ✅ Why multifamily remains a shining star despite economic conditions 🌟 Register your spot today! 👉https://lnkd.in/gNydjS72

‘A problem we’ll be working on for years’: Fed chair Jerome Powell says commercial real estate’s impact on banking has just begun We do expect that there will be losses, but there will be banks that have concentrations, and those banks will experience larger losses,” Powell told reporters. “So we’re well aware of that, we’re monitoring it carefully.” #recession #economy #financialcrisis #stocks #investing #trading