New Basel III standards have prompted banking regulators, including the FDIC, to propose tougher capital rules on banks of all asset sizes that could hamper the for-profit institutions' ability to fund commercial real estate.
Specifically, large and community banks would be subjected to a 150% risk weight that would apply to some loans that finance the acquisition, development or construction of commercial real estate, according to proposed rules posted on FDIC's website.
Banks have complained in trade publications that those struggling to meet new capital benchmarks will have to reduce business lending as a result.
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