Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210361
Authors: 
Hagen, Marius
Hjelseth, Ida Nervik
Solheim, Haakon
Vatne, Bjørn Helge
Year of Publication: 
2018
Series/Report no.: 
Staff Memo No. 11/2018
Abstract: 
Banks' commercial real estate loans account for almost half of banks' total loans to non-financial enterprises. Losses on these loans are normally low in good times, but they have proved to be one of the largest sources of bank losses in financial crises. As there is often a mismatch between the maturity of a bank's commercial real estate loan and the lifetime of a property, there is a risk that banks do not adequately price in losses on commercial real estate loans incurred during crises. This article further argues that financial risk is particularly high in the office segment. Prices in Oslo are currently elevated, vacancy rates are low and construction in recent years has been limited. Structural factors are restraining speculative construction. A tight market on the supply side may contribute to reducing the risk of a substantial price adjustment even if yields should rise.
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-060-3
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Research Report
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.