Moody's Red Flags and Delinquent Loans: The Growing CRE Crisis in Large Banks "Not that the largest banks are the only ones under a watchful eye. In June, Moody's put six banks on review for credit downgrades. Moody's concern was over the valuations of CRE loans and the ultimate ability of the borrowers to refinance their properties or add enough equity to settle their debts. Reuters pulled together a list of banks that seem on risky ground. They used the S&P Global Market Intelligence analysis of ratios between total CRE loan ratios and Tier 1 capital. The latter, according to the Bank for International Settlements, is the highest quality of regulatory capital in a bank that keeps it a going concern. The higher the ratio between CRE loans and Tier 1 capital, the weaker the bank's ability to cover significant loan defaults. The Reuter's list is a dozen banks with CRE loans-to-Tier 1 capital ratios of 530 (American Price Bank) to 623 (Hingham Institution for Savings). These are smaller banks with between $360 million and $9.45 billion in assets." https://lnkd.in/eq49AkZA