Banks Under Pressure from Higher Rates, Regulators Requiring More Capital for CRE Exposure

The median cumulative deposit beta at U.S. banks-which measures how much of the Fed's rate hikes have been passed onto depositors since 2022-increased 2.92 percentage points to 29.62% during the first quarter, according to S&P Global Market Intelligence. Meanwhile, the median cumulative loan beta-which measures how much of the Fed's hikes have been passed onto borrowers-increased just 1.48 percentage points to 22.05%. Last quarter, the median net interest margin declined by 7 bps. 

Another S&P post discussed how bank regulators are increasingly imposing stricter capital requirements on banks with relatively high levels of CRE exposure.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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