Michael Barr, the Federal Reserve’s vice chairman for financial supervision, said in a statement that delinquency rates on commercial real estate loans and consumer loans in the U.S. financial system have risen to five-year highs.
“Delinquency rates are rising on certain commercial real estate loans, such as those secured by office space, and in some areas of consumer lending,” Barr said in remarks scheduled to testify before the House Financial Services Committee on Wednesday.
It is reported that the delinquency rate of commercial real estate loans in the United States has reached its highest point in five years. Additionally, credit card and auto loan delinquency rates among residents are also growing, according to Michael Barr.
The statement pointed out that U.S. banks have raised the expected level of losses caused by loan defaults and that the U.S. financial system needs to prepare for upcoming losses but must still continue to fulfill its “important role” of providing loans to businesses and households.
