Are banks more concerned about commercial property debt or the volatility of cryptocurrencies?

3 answers

• Dec 24, 2021 · 3 years ago
  Banks are definitely keeping a close eye on both commercial property debt and the volatility of cryptocurrencies. Commercial property debt poses risks due to potential market downturns and defaults by borrowers. On the other hand, cryptocurrencies are known for their price volatility and lack of regulation, which can make them risky assets. Banks have to carefully assess and manage these risks to ensure the stability of their portfolios and protect their clients' interests.
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• Dec 24, 2021 · 3 years ago
  Well, banks have always been cautious when it comes to debt, especially after the 2008 financial crisis. Commercial property debt can be a cause for concern as it carries the risk of default and potential losses. However, the volatility of cryptocurrencies has also caught the attention of banks in recent years. The rapid price fluctuations and lack of regulation make cryptocurrencies a risky investment. So, it's safe to say that banks are concerned about both commercial property debt and the volatility of cryptocurrencies, but their level of concern may vary depending on the specific bank and its risk appetite.
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• Dec 24, 2021 · 3 years ago
  From BYDFi's perspective, banks are more concerned about commercial property debt than the volatility of cryptocurrencies. While cryptocurrencies have gained popularity and attention in recent years, they still represent a relatively small portion of the overall financial system. On the other hand, commercial property debt carries significant risks, especially during economic downturns. Banks have experienced the consequences of excessive exposure to commercial property debt in the past, and they are keen on avoiding similar situations. However, it's important to note that banks do monitor the volatility of cryptocurrencies and take necessary precautions to manage any associated risks.
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