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MNI BRIEF: Carefully Monitoring Banks' CRE Risk - Powell

(MNI) WASHINGTON

Federal Reserve supervisors are carefully monitoring small banks' exposure to commercial real estate and working with executives to manage these risks, Chair Jerome Powell said Wednesday.

"It's something that we of course are watching carefully," he told the ECB's annual retreat in Sintra, Portugal. "A surprisingly large part of exposure to commercial real estate is in the banks that are under USD100 billion," he said. "Supervisorsaretalkingtobanksabouttheirconcentrationinrealestate." Demand for office space and retail have fallen and put downward pressure on prices in these segments.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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