WSJ: Strain on Small and Large Banks in the CRE Sector

Differences in the performance of CRE loans are leaving the largest banks (those with more than $100 billion in assets) more exposed to distress in the sector than smaller institutions. According to data from S&P, 4.4% of non-owner-occupied CRE loans were delinquent for large banks, compared to less than 1% for smaller banks. Factors like owner-occupancy status, location, and interest rates have been important drivers of performance. 

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