A stable, well-functioning financial market for allA stable, well-functioning financial market for allThe banks’ lending for commercial real estate in Sweden
Based on input reported statistical material, we find that the current financial crisis has yet to make any obvious impression in the form of insolvency and credit losses in lending for commercial real estate.
Compared with the banking crisis in the beginning of the 1990s, the banks are now stressing the importance of a good cash flow from real estate, and they have considerable internal valuation expertise which reduces the risk of overly optimistic valuations.
Collateralised loans in commercial real estate in Sweden amount to SEK 290 billion, according to this investigation.
