American Banker (05/13/08) P. 3; Adler, Joe
Banks that once saw commercial real estate as a growth engine could soon find themselves in dire straits. The Office of the Comptroller of the Currency (OCC) and other regulators are now urging these banks to take such steps as raising capital on commercial property portfolios. The recent closing of ANB Bancshares Inc.'s ANB Financial subsidiary, which had the lion's share of its lending in commercial real estate, is one example of why regulators are so concerned. Former OCC bank examiner Wayne Rushton remarks, "When you as a bank decide to concentrate your business on that particular niche market, you're most likely taking on significant risk in the event of a downturn. That's the cause of all the anxiety right now."
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