US commercial real estate shakes banks

The impact of the losses announced by two banks in the US and Japan due to the decline in the value of commercial real estate in the US continues. Shares of US-based regional bank New York Community Bancorp had fallen by a record 38 percent on Wednesday after announcing a surprise quarterly loss and increased loan loss provisions. After Moody's put the bank on review for a rating downgrade, the bank's shares fell by 11 percent on Thursday. The decline in demand for US commercial real estate due to rising interest rates and the increasing work-from-home trend is not only affecting US banks. Japanese Aozora Bank, which has grown with loans for these properties in the last 10 years, lost more than 30 percent in market value in two days after announcing a loss from this position. The bank's shares fell by as much as 19 percent today. Deutsche Bank also announced that it increased its loss provisions for US commercial real estate loans from 26 million euros last year to 123 million euros.