Banks nervous over level of commercial exposure

by admin on October 2, 2008

Australia’s major banks are estimated to have a collective $200 billion exposure to the local commercial property market, a sector that is being drawn deeper into the worsening financial cycle.

Based on figures from investment bank Deutsche Bank, the nation’s top four banks each have a commercial property book — made up of retail, commercial and hotel assets — of $30-40 billion, with up to $6 billion of development.

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