Supervisory Insights provides a forum for a discussion of issues and trends identified through the FDIC’s examination and supervisory activities.
“Commercial Real Estate: An Update on Bank Lending Amid the Evolving Pandemic Backdrop” examines the financial performance of banks with a commercial real estate (CRE) concentration since the onset of the COVID-19 pandemic through yearend 2021. The article also provides examination observations related to CRE lending risk management practices and discusses the FDIC’s supervisory focus for banks with significant CRE portfolios.
Banking organizations continue to issue subordinated debt to meet regulatory capital and funding objectives, and a number of insured depository institutions have invested in the subordinated debt of other institutions. “Subordinated Debt: Issuance and Investment Considerations” is intended to help financial institutions better understand the capital, investment, and financial reporting requirements for the issuance of and investment in subordinated debt. The article also describes the treatment of subordinated debt for deposit insurance assessment purposes.
The Summer 2022 issue of Supervisory Insights includes an overview of regulations and other items of interest released since January 2022. A listing of entries dating from the publication of the Fall 2019 issue of the journal through year-end 2021 is available upon request.
We hope you find both articles in this issue of Supervisory Insights to be useful. We encourage our readers to provide feedback and suggest topics for future issues. Please email your comments and suggestions to SupervisoryJournal@fdic.gov.
Doreen R. Eberley
Director
Division of Risk Management Supervision