The U.S. Government Accountability Office has called on federal bank regulators to update their guidance for commercial real estate in light of changes in the way examiners treat loans following the financial crisis. The report noted that examiners’ actions in certain cases are inconsistent with the guidance, which dates to 2006, recommending that “Revising or supplementing the guidance to provide more details about risk management practices and examples of when to reduce CRE concentrations would help both examiners and bankers better understand how to assess and manage such concentrations.”
