"Rising Concerns: US Regional Banks Grapple with Commercial Real Estate Woes"

Investor scrutiny around regional banks, particularly New York Community Bancorp, has intensified due to their exposure to commercial real estate, with fears of more pain for those with office and multifamily property loans. The fallout of downgrades announced by credit ratings agencies has raised concerns about the health of smaller banks, as they account for nearly 70% of all commercial real estate loans outstanding. The COVID-19 pandemic has impacted the commercial real estate market, leading to expectations of rising delinquency rates on commercial mortgage-backed securities. Some investors are focused on banks with high concentrations of real estate loans, and there are predictions that some regional banks may be forced to sell loans at a loss or increase provisioning for losses.