Jamie Dimon cautions on commercial real estate loans and advises preparation for higher rates.

JP Morgan Chase CEO Jamie Dimon has warned that commercial real estate loans could pose a threat to some banks, particularly in certain locations and for certain types of properties. While U.S. banks have experienced historically low loan defaults in recent years, rising interest rates and changing work patterns could lead to defaults in the commercial real estate sector. Dimon also advised banks to prepare for interest rates to rise higher than expected, and to tighten lending activity to build capital and prepare for potential losses.