Small US banks may be affected by losses in commercial loans.
Global Banking News - 12 February 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
A report by the Congressional Oversight Panel of the Troubled Asset Relief Programme has said that small banks in the US could be hurt by commercial loan losses.
It is believed that about 3,000 banks would be forced to cut their lending significantly because of losses on commercial real-estate loans. Between 2010 and 2014, about USD1.4tn in commercial real estate loans would reach the end of their term and in more than half of the cases, the borrowers would owe more than what the property is worth.
The report also said that mid-sized banks would experience losses on commercial real estate loans.
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