"German Bank Warns of Looming Commercial Real Estate Crisis"
German bank Deutsche Pfandbriefbank AG issued an unscheduled statement about increased provisions due to the "greatest real estate crisis since the financial crisis," reflecting concerns about exposure to the struggling commercial real estate sector. Lenders globally are facing increasing provisions on debt as loans sour, with the US commercial property market particularly affected. European banks, including Deutsche Bank and Aareal Bank AG, are experiencing bond slumps and warnings about potential losses. The situation has raised fears of broader contagion and echoes of the 2008 global financial crisis, with Germany's Landesbanks also feeling the pain of their exposure to commercial real estate.
