There was the U.S. subprime crisis that has shaken the global economy, but this time the Bank for International Settlements reported that a housing crisis is brewing in the commercial real estate.
Initially the central bank of central banks indicate that the stimulus plan will have to gradually stop because financial institutions are becoming dependent on these injections of liquidity and may base their system on this type of financing. It also adds that there is a risk of real estate crisis through the high risk-taking by banks in commercial real estate.
Surprising as it may seem this announcement in conjunction difficult discussions G20. The U.S. banks are indeed very exposed and the risk of heavy losses from the decline in commercial real estate. The BIS also indicates that the price of commercial real estate has lost almost one third of its value compared to the highest of 2007. As the subprime delinquencies are starting to make noise, because they now represent 8% of assets.
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