Some of the euro zone’s top banks may be inflating the value of commercial real estate, potentially masking a deterioration of loans to a sector struggling with a sharp downturn, a European Central Bank inspection found.
Commercial property prices have fallen sharply due to higher borrowing costs and poor demand as firms adjust to post-pandemic realities, with the ECB estimating that prices may have dropped by close to a tenth last year alone.
Source: REUTER
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