Bank Failures Explained: Questions, Answers and How CRE Fits In

Loan Loss Reserves Loan loss reserves as percent of total loans LOAN LOSS RESERVES n loss reserves as percent of total loans

What should I be watching at this point, and where are we in this CRE credit cycle? QUESTION THIRTEEN It’s the early days, but history has taught us that conditions can change relatively quickly so it’s good to have a pulse on things even if it doesn’t feel as if anything is sounding an alarm bell just yet (in the data, that is). ANSWER

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

1991

2011

1997

1992

1995

1993

2017

2012

2021

1998

2015

2013

1996

1999

2018

2016

2019

1994

2014

2001

2010

2000 2022 All Institutions Bank Holding Companies >$750B Bank Holding Companies $50B-$750B Banks and Bank Holding Companies <$50B 2002 2003 2004 2005 2006 2007 2008 2009 2020

Sources: Federal Reserve Bank of New York Sources: Federal Reserve Bank of New York

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Bank Failures Explained - Questions, Answers and How CRE Fits In

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