Economics
San Francisco Fed Says Banks Could Weather a Big Hit to Housing
- ‘Small fraction’ of smaller banks would be undercapitalized
- Study looks at smaller banks not in supervisory stress test
Residential homes stand in the Sea Cliff area of San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
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America’s banks could largely weather a major housing downturn, a new Federal Reserve Bank of San Francisco analysis finds, and that includes thousands of smaller lenders who typically have higher exposure to real estate.