How bank turmoil is impacting APAC commercial real estate credit
Recent bank funding turmoil is likely to lead to tighter lending conditions in commercial real estate markets in the Asia-Pacific region. CRE loans typically attract a higher risk weight than other bank assets, which makes the sector more susceptible to a more marked pullback in lending should banks’ capital adequacy come into question.
What you will learn:
- Recent bank funding turmoil is likely to lead to tighter lending conditions in commercial real estate markets in the Asia-Pacific region. CRE loans typically attract a higher risk weight than other bank assets, which makes the sector more susceptible to a more marked pullback in lending should banks’ capital adequacy come into question.
- Should more credit stress emerge, banks are also likely to be more selective in terms of where they focus their lending. CRE loans, or more broadly, specialised lending, accounts for on average just under 6% of the loan books for some APAC banks, but over 11% of the banks’ risk weighted assets (and by extension, capital adequacy).
- The high participation in commercial real estate debt markets from offshore banks has also clouded the stability of the credit environment. While a more diverse set of lenders is generally a positive, offshore banks bring a different set of risks to the market – historically, offshore banks have been more volatile in expanding and contracting their CRE loan exposure.
Tags:
You may also be interested in

Post
Oxford Economics enhances its real estate solutions with the addition of MSCI data
Oxford Economics is delighted to announce a significant product enhancement to its Real Estate Economics Service and Global Economic Model, with the addition of MSCI historic real estate index data.
Find Out More
Post
Real Estate Key Themes 2025: A tentative revival for CRE growth
After a year of transition in the commercial real estate cycle in 2024, we believe CRE is poised for a tentative revival in values.
Find Out More
Post
Spain: Regional growth driving the house price boom
House prices are booming in Spain. A combination of strong demand and supply-side constraints has placed significant upward pressure on prices in recent years, and this will likely remain the case in the near term.
Find Out More