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from the Atlanta Fed
– this post authored by Vanessa Cameron
The key to successful commercial real estate (CRE) lending is the development of a robust risk management framework that includes strong underwriting standards and credit administration practices. A January 2013 Government Accountability Office (GAO) study, Financial Institutions Causes and Consequences of Recent Bank Failures, noted that 85 percent of the 414 financial institutions that failed between January 2008 and December 2011, had less than $1 billion in assets.