Bank Portfolios Grow

Big U.S. banks increased their holdings of commercial real estate loans at a stepped-up but still moderate rate last year. The banking companies with the 100 largest commercial real estate portfolios posted a 6.8% increase in commercial, multi-family and construction-and-land loans, according to regulatory data compiled by Trepp Bank Navigator.

That surpassed 2013’s growth rate of 4.5%, as banks continued to ramp up their lending, but it remained modest by historical standards. Trap managing director Matthew Anderson noted there were several years of double-digit increases before the financial crisis.

“The amount of growth we are seeing now is very sustainable,” Anderson said. “Banks are getting more comfortable with commercial real estate lending again.”

(via CMA)