House of cards? The $3 trillion (non-systemic) real estate risk
Regional banks share the bulk of US commercial real estate exposure, but the sector’s downturn doesn’t faze them
The US commercial real estate slump might reasonably be expected to unsettle regional banks with a collective multi-trillion-dollar exposure to the sector. But some of the most exposed banks – and several of their regulators past and present – aren’t unduly rattled.
Take Oregon-based Umpqua Bank. It has the third-highest CRE exposure among banks with over $50 billion in assets. Its portfolio of over $10 billion in CRE loans exceeds 300% of its core capital – the threshold at which longstanding
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