Fed Issues Caution Regarding Commerical Real Estate Loans
Author: Diana Heeb Bivona
Fed Chairman Bernanke cautioned community banks to find ways to improve how they manage their potential risk. He believes that banks have grown increasingly reliant on commercial real estate lending and have eased many standards and safeguards when approving these types of loan products. Thus, opening themselves up to potential dangers. Bernanke believes banks should take steps to review their current risk-management practices and possibly upgrade them, if needed.