U.S. banks are seeing some of the lowest loss rates of the past six years on commercial real estate and construction loans, boosting their case for increased lending activity in the sector.
Data from Sageworks, a financial information company, show that net charge-offs for commercial real estate loans (non-farm, non-residential) were 0.16 percent of average loan balances in the most recent quarter. This is down from 0.9 percent at the end of 2009 and 13 basis points below June 2013 quarter rates. Loss rates for construction and land development loans have fallen from 3.58 percent of average loan balances in December 2009 to 0.24 percent in the most recent quarter.
Read More: http://www.forbes.com/sites/sageworks/2014/09/14/a-bigger-role-for-banks-in-commercial-real-estate-lending/
Data from Sageworks, a financial information company, show that net charge-offs for commercial real estate loans (non-farm, non-residential) were 0.16 percent of average loan balances in the most recent quarter. This is down from 0.9 percent at the end of 2009 and 13 basis points below June 2013 quarter rates. Loss rates for construction and land development loans have fallen from 3.58 percent of average loan balances in December 2009 to 0.24 percent in the most recent quarter.
Read More: http://www.forbes.com/sites/sageworks/2014/09/14/a-bigger-role-for-banks-in-commercial-real-estate-lending/
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