US regional banks build stronger safety nets as CRE pain lingers

U.S. banks have boosted their provisions for credit losses as deteriorating commercial real estate (CRE) loans and high interest rates fuel fears of defaults, the regional lenders’ second-quarter results show.

Some, such as M&T Bank (MTB.N), opens new tab, are also gradually reducing their exposure to the troubled CRE sector and repositioning their balance sheets to focus on commercial and industrial lending and build capital.