"Remote Work's Ripple Effect: Japanese Bank Aozora Hit by US Real Estate Losses"

Plummeting regional bank stocks, led by New York Bancorp's 40% tumble, reflect the crisis in America's commercial property sector, with a possible $700 billion default looming. The pandemic's impact on office space demand and higher interest rates have made it difficult for landlords to repay loans, particularly affecting smaller regional banks, which are four times more exposed to commercial real estate loans than big banks. Lenders are now trying to limit their exposure to the property sector by shedding their property loan portfolios and staving off commercial real estate loans.