Real-estate Dominated Loan Growth in Florida

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Real Estate Press - In Florida, the community banks, which have assets of about $1 billion, have been experiencing a welcome growth.  And this is attributed to the substantial increase of loans.  However, a study conducted by the Federal Deposit Insurance Corporation revealed that a considerable percentage of these loans are related to real estate.

According to the study, 56% of the community banks have construction and development loans.  This is more than twice the percentage in 1987, the year identified to be the last real estate boom.   While this may spell profit for community banks, the Federal Reserve, the FDIC, and other banking regulatory agencies are cautious.  The real estate market is still considered unstable and may swing from one extreme to another.  Thus, these agencies wanted to establish guidelines that will govern the commercial real estate lending in community banks.   Mayflor Mantua Florida Real Estate