(Reuters) – U.S. banking regulators are asking lenders to work with credit-worthy borrowers that are facing stress in the commercial real estate market.
Financial institutions should work “prudently and constructively” with good borrowers during times of financial stress, the agencies said in a statement.
The statement from the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp, the National Credit Union Administration and the Office of the Comptroller of the Currency updates and supersedes the previous guidance on commercial real estate loan workouts issued in 2009.
Office loans have posed concerns for some U.S. lenders as property values decline and more borrowers default on their loans.
Federal Reserve Chair Jerome Powell earlier in the month said that U.S. commercial real estate lending remains under pressure but appears unlikely to threaten the broader financial system.
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Source: www.reuters.com
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