How CRE Loans Would Shift Under New Bank Capital Rules

Jason Shafer, Henry Fields and Jiang Liu authored an article for Law360 on the implications of major proposed changes by U.S. bank regulatory agencies on how large banking organizations with $100 billion or more in total assets risk-weight their loans, including commercial real estate loans.

Under the proposal, covered institutions would be required to use both the existing standardized approach and a newly crafted regulatory "expanded risk-based approach" and be subject to the greater of the resulting ratios for their minimum risk-based capital requirements.

Read the full article.