The prevalence of high CRE concentrations to capital now exceeds levels of the late-1980s
| Period | Percent of FDIC-insured institutions with commercial real estate loans to equity capital greater than: | ||||
|---|---|---|---|---|---|
| 700% | 600% | 500% | 400% | 300% | |
|
|
3.7% |
4.8% |
6.3% |
8.7% |
13.7% |
|
|
3.4% |
4.2% |
5.8% |
8.5% |
13.8% |
|
|
3.1% |
3.9% |
5.6% |
8.2% |
13.7% |
|
|
2.6% |
3.5% |
4.9% |
7.5% |
13.0% |
|
|
1.9% |
2.6% |
3.9% |
6.2% |
11.4% |
|
|
1.10% |
1.80% |
2.90% |
4.90% |
9.7% |
|
|
0.80% |
1.30% |
2.20% |
4.20% |
9.0% |
|
|
0.70% |
1.20% |
2.30% |
4.50% |
10.5% |
|
|
0.50% |
0.90% |
1.80% |
3.80% |
9.3% |
|
|
0.61% |
1.10% |
2.00% |
4.70% |
10.8% |
|
|
0.47% |
0.95% |
1.96% |
4.48% |
10.9% |
|
|
0.51% |
1.01% |
2.22% |
5.21% |
11.7% |
|
|
0.86% |
1.64% |
3.69% |
8.04% |
16.1% |
|
|
0.84% |
1.78% |
4.21% |
8.65% |
20.5% |
|
|
1.00% |
2.28% |
5.35% |
10.81% |
20.5% |
|
|
1.07% |
2.62% |
6.40% |
12.79% |
22.2% |
|
|
1.41% |
3.51% |
7.61% |
14.80% |
25.2% |
|
|
1.47% |
4.23% |
8.87% |
17.04% |
28.3% |
|
|
1.80% |
4.80% |
10.20% |
18.20% |
29.4% |
Source: FDIC. Includes FSLIC-insured institutions prior to 1989. All data reflect year-end totals except 2005, which represents mid-year totals. CRE loans include: loans secured by non-farm residential properties, by multifamily properties, and construction loans.