Susan Bies, Federal Reserve Governor, stated last Friday that the fast development of commercial real estate lending by the U.S. might lead to problems in the future.

She told the group of corporate risk managers that what they are seeing on fastest growing types of loans on book banks are the commercial real estate loans. She said this to explain the reason why the U.S. regulators issued guidance on the real estate lending for commercial establishments.

She concluded that the concentration of commercial real estate loans at banks is twice than what they had in the past 20 years. She anticipates that this growth may result to future problems in the future.

By M. Sese