Severe Enforcement Actions Spike, CRE Banks' Capital Ratios Increase

U.S. banking regulators have issued 48 severe enforcement actions so far in 2024, eclipsing last year's total of 43 in just three quarters. As banks combat increasingly sophisticated fraud attacks and other financial crimes, their performance in other areas tends to slip. This can prompt more regulatory actions, one lawyer explained. Additionally, BSA/AML enforcement actions are increasing due to heightened scrutiny of fintech partnerships. 

Another S&P article discusses how banks' with CRE loan exposure above regulatory thresholds saw their median common equity Tier 1 capital ratios rise to 12.19% in the second quarter.

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