Fitch Ratings said today that the performance metrics of commercial real estate (CRE) continues to deteriorate at an unprecedented pace. The CRE market is where significant risk exposure exists for the majority of the rating agency's U.S. bank universe.

CRE loans, not including the more problematic construction and development portfolios, make up over 125% of total equity for the 20 largest banks that are rated by Fitch. The rating agency noted that the risk is even higher for banks with less than $20 billion in assets, as average CRE exposure makes up over 200% of total equity for these institutions.

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