Now that most community banks have eight to ten quarters of CECL experience under their belts, many are still grappling with foundational issues such as overreliance on qualitative factors, lack of responsiveness to risk rating...
Author: Adam Mustafa, CEO
In today’s banking landscape, commercial real estate (CRE) concentrations are frequently regarded with caution, often drawing concern from regulators, shareholders, and industry observers alike. Yet, according to Invictus Group CEO Adam Mustafa, this viewpoint may overlook key insights about banks with these specialized portfolios.
In a recent article published in American Banker, Adam explores why high CRE concentrations don’t necessarily signify elevated risk, especially for banks that have developed deep expertise within this sector. Instead of a one-size-fits-all approach, he argues that a nuanced understanding is needed to appreciate the advantages these banks often hold, including familiarity with local markets and lending niches that bolster their decision-making and risk management capabilities.
To dive deeper into this critical perspective, read Adam Mustafa’s article in American Banker. This publication requires a subscription, so be sure to log in if you're a member.
Read the full article on American Banker
Invictus has substantial experience and expertise in these areas, especially with managing CRE concentrations, stress testing, and capital planning. Please reach out to Patti Casaleggio at pcasaleggio@invictusgrp.com to schedule your free consultative session today.
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capital planning, community bank regulations, Deregulation, bank strategy, community banks, regulatory capital, bank growth strategy, cre risk
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