Skip Header
U.S. flag

An official website of the United States government

Supervisory Insights

Summer 2022 Vol. 17, Issue 1 - Table of Contents

Last Updated: March 15, 2023

Supervisory Insights - Summer 2022 - PDF

Letter from the Director


Commercial Real Estate: An Update on Bank Lending Amid the Evolving Pandemic Backdrop

Although the economic effects of the pandemic appear to be easing, the impacts, including on the commercial real estate (CRE) sector, may be lasting, may have exacerbated existing secular trends, or both. This article highlights the financial performance of banks concentrated in CRE lending as well as examination observations about CRE lending risk management practices. The article also describes the FDIC’s forward-looking supervisory focus for banks with significant exposure in this sector.

Subordinated Debt: Issuance and Investment Considerations

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. The issuance of subordinated debt has benefits and risks for banking organizations, and financial institutions should remain aware of the generally applicable capital rule’s requirements. This article 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.

Regular Features

Regulatory and Supervisory Roundup

This feature provides an overview of recently released regulations and other items of interest.

Supervisory Insights

Supervisory Insights is published by the Division of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation to promote sound principles and best practices for bank supervision.

Martin J. Gruenberg
Chairman, FDIC

Doreen R. Eberley
Director, Division of Risk Management Supervision

Journal Executive Board

Division of Risk Management Supervision
Rae-Ann Miller, Senior Deputy Director and Executive Editor
Bobby R. Bean, Deputy Director
Martin D. Henning, Deputy Director
John F. Vogel, Deputy Director

Division of Depositor and Consumer Protection
Jonathan N. Miller, Deputy Director

Regional Directors
Gregory P. Bottone. Chicago Region
Kristie K. Elmquist, Dallas Region
Frank R. Hughes, New York Region
James D. LaPierre, Kansas City Region
Kathy L. Moe, San Francisco Region

Journal Staff

Kim E. Lowry
Managing Editor

Darin B. Flake
Financial Writer

Supervisory Insights is available online by visiting the FDIC’s website at To provide comments or suggestions for future articles, to request permission to reprint individual articles, or to request print copies, send an e-mail to

The views expressed in Supervisory Insights are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. In particular, articles should not be construed as definitive regulatory or supervisory guidance. Some of the information used in the preparation of this publication was obtained from publicly available sources that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the Federal Deposit Insurance Corporation.