Banks to unload real estate to improve financial soundness

Banks to unload real estate to improve financial soundness

Commercial lenders and insurers are unloading real estate assets to bolster their capital and liquidity profiles, in order to better prepare for stringent regulations, industry officials said Tuesday. Most pressing is the need to increase Common Equity Tier 1 (CET1) capital ratios ahead of tighter stress buffer regulations expected before the end of the year. The ratio measures a financial firm’s highest-quality capital relative to risk-weighted…