Commercial Real Estate Lending by Banks Surpasses Pre-Recession Levels

U.S. bank lending on commercial real estate has now rebounded to levels not seen since before the Great Recession, but loans from those heady days of 2007 are still acting as a drag on bank coffers, though much less of one.

The total volume of CRE loans made by banks as of June 30 is now 2% higher than it was going into the summer of 2007. Total CRE loans on the books of the nation’s 6,680 FDIC-insured banks stands at $1.63 trillion vs $1.60 trillion as of March 31, 2007, according to the latest FDIC numbers released last week.                                    Bank Vault Dollar Sign

Those numbers also continue to show the damage done by the two-year long real estate-fueled recession and the five years of climbing back. There are 1,982 fewer insured bank and savings institutions today than there were then, and the ones remaining are saddled with 528% more foreclosed properties on their books than reported in March 2007.

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About Cliff Bogart

Commercial Real Estate Broker, Commercial RE Instructor, CCIM Instructor, runner, triathlete, movie geek, father and husband.
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