The role of real estate in the New England credit crunch

Joe Peek and Eric Rosengren ()

No 92-4, Working Papers from Federal Reserve Bank of Boston

Abstract: Banks, particularly in New England, have experienced major losses of capital as a result of their exposure to risky real estate loans. These losses, accompanied by strict enforcement of capital regulations, have caused banks to shrink their assets in an attempt to improve their capital/asset ratios. Poorly capitalized banks have contracted their real estate loans much more than their better-capitalized peers. In New England, which experienced widespread shocks to bank capital, credit availability for real estate is being constrained by capital-impaired lenders.

Keywords: Real property; Credit; Bank loans; Banks and banking - New England; New England (search for similar items in EconPapers)
Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in AREUEA 22, no. 1 (Spring 1994): 33-58.

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp1992/wp92_4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbwp:92-4

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().