Working Paper
The role of real estate in the New England credit crunch
Abstract: Banks, particularly in New England, have experienced major losses of capital as a result of their exposure to risky real estate loans. These losses, accompanied by strict enforcement of capital regulations, have caused banks to shrink their assets in an attempt to improve their capital/asset ratios. Poorly capitalized banks have contracted their real estate loans much more than their better-capitalized peers. In New England, which experienced widespread shocks to bank capital, credit availability for real estate is being constrained by capital-impaired lenders.
Keywords: Real property; Credit; Bank loans; Banks and banking - New England; New England;
Status: Published in AREUEA 22, no. 1 (Spring 1994): 33-58.
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File(s): File format is application/pdf http://www.bostonfed.org/economic/wp/wp1992/wp92_4.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Working Papers
Publication Date: 1992
Number: 92-4