Ryan Nash

Regional banks back in focus on real estate concerns

Ryan Nash, Sam Grobart

Ryan Nash of Goldman Sachs distinguishes current regional banking stress from the 2023 crisis by characterizing it as idiosyncratic and concentrated within smaller institutions rather than systemic, citing improved liquidity and accessible funding facilities. While commercial office loans and specific multifamily segments face multi-year headwinds, the industry holds adequate reserves and anticipates higher but manageable credit losses for 2024. Key risk exposure remains skewed toward banks under $150 billion in assets, though broader residential real estate dynamics and stabilizing net interest income support a positive outlook for sector growth.