Vacant Commercial Real Estate, Higher Interest Rates Could Create ‘Stress’ for Smaller Banks: Treasury Secretary Yellen

Vacant Commercial Real Estate, Higher Interest Rates Could Create ‘Stress’ for Smaller Banks: Treasury Secretary Yellen
U.S. Treasury Secretary Janet Yellen testifies before a House Ways and Means Committee hearing on President Biden's proposed 2023 U.S. budget, on Capitol Hill in Washington, on June 8, 2022. Jonathan Ernst/Reuters
Katabella Roberts
Updated:
0:00

Treasury Secretary Janet Yellen told lawmakers on Feb. 8 that she is “concerned” that increased vacancy rates in the commercial real estate market combined with higher interest rates could create some “stress” for smaller banks.

Ms. Yellen told a Senate Banking Committee hearing that falling demand in commercial real estate—especially for office buildings in metropolitan areas— combined with soaring interest rates for refinancing loans could create a problem for smaller banks, particularly as real estate loans come due.

Katabella Roberts
Katabella Roberts
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Katabella Roberts is a news writer for The Epoch Times, focusing primarily on the United States, world, and business news.
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