In the US, more office space is vacant than it has been since the 1980s.
(Photo: Reuters)
There is a great deal of market psychology behind the turmoil in the banking market – loosely based on the motto, there is a crisis when investors think there is a crisis. But there are also some tangible risks that are making finance professionals frown. First and foremost is the real estate market, or to be more precise, the business with commercial real estate.
In the USA in particular, supervisors and central bankers fear a downward spiral. Vacancies in office buildings are higher than they have been since the 1980s, which is depressing rents, which are rising more slowly than inflation. At the same time, loans worth around $450 billion will have to be refinanced this year alone, and at much higher interest rates.
>>Read here: According to estimates, the US banking system is currently suffering losses of up to 2 trillion dollars
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