Erste Group works on Austrian commercial real estate loan risk transfer
Updated
Updated · Bloomberg · May 5
Erste Group works on Austrian commercial real estate loan risk transfer
6 articles · Updated · Bloomberg · May 5
The Vienna-based bank is discussing the deal with investors, linked to almost €4 billion in loans, according to people familiar with the private talks.
The significant risk transfer would help move part of the credit risk off Erste's balance sheet as terms may still change during the sale process.
The planned transaction comes as regulators press lenders to strengthen capital buffers against possible defaults in the commercial real estate sector.
As regulators clash globally, do risk transfers make banks safer or just better at hiding risk?
As banks offload real estate risk, who is the ultimate loser if the market crashes?
With a $1.15 trillion debt wall, can these complex deals truly avert a commercial real estate crisis?