In a wide-ranging interview in The RMA Journal, KeyBank’s Real Estate Capital team discusses relationship banking, syndications, risk ratings, bubbles, and lessons learned from this and past crises.
Philadelphia, PA (October 8, 2008)—KeyBank, a major player in commercial real estate nationally, focuses its efforts on customers that have a total banking relationship with the institution. Executive vice president E.J. Burke said Key’s business model is relationship banking. “That focus is consistent throughout Key, whether it’s our corporate institutional banking, community banking, or commercial real estate business."
Burke and other members of his team said that financial institutions contemplating a move into commercial real estate need to stick to underwriting standards and know their sponsors and the markets in which they are lending.
Other interview highlights include discussion about:
- New construction loans under increased scrutiny.
- Managing concentrations of real estate.
- The market appetite for distressed assets.
- Tightening underwriting standards in the current market.
- The necessity for robust dual risk-rating systems
The full interview is available on RMA’s Web site at:
http://www.rmahq.org/RMA/AboutRMA/PressReleases/StayAheadoftheCurve
For permission to reprint or post the interview on your Web site, please contact Meg McBride, RMA Public Relations, mmcbride@rmahq.org
About RMA
Founded in 1914, The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk, and operational risk.
Headquartered in Philadelphia, Pennsylvania, RMA has 3,000 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the Association by more than 20,000 risk management professionals who are chapter members in financial centers throughout North America, Europe, and Asia/Pacific. Visit RMA on the Web at www.rmahq.org
Contact:
Meg McBride
RMA Public Relations
215-446-4110