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Tim Panel Trustees in the Congress of the United States (U.S.) yesterday warned the amount of losses in commercial real estate sector could endanger the banking system.

According to the Panel, the amount of commercial real estate loans which reached USD1, 4 trillion would require re-financing funds (refinancing) in the next four years to coincide with the due date. In his report, the Panel stated that half of the value of property loans has decreased. “We estimate the loss as bad loans could reach USD200-300 billion and threaten the banking 3000 small and medium scale that does not have a sufficient proportion to commercial assets,” said Panel.

The report is a signal for the White House and Congress that the credit market of commercial real estate is expected far worse before it rebounded. “We were seeing the point where the TARP (troubled asset relief program) decreases and the major challenges in the economy,” said the U.S. Congress Panel Chairman Elizabeth Warren. He added that from this point the U.S. needed a new system before the real estate credit problems happen again. In his research, the Panel found the 2988 investment bank more than three times the assets owned in the field of commercial real estate loans. Of these, 2,500 of whom memeliki bank assets less than $ 1 billion.

“Many such small banks have gagal.Kegagalan small banks will be felt for several years,” said Warren. He added, commercial property business that failed to result in economic contraction have a major impact because it bankbank also play a role in creating jobs and increasing economic activity. After submitting the report, the Panel offers some possible solutions for policy makers to prevent the real estate sector fell into the abyss of crisis. The panel recommends the U.S. Treasury Department to test the resilience of the banking sector is concentrated in commercial real estate loans.

The panel also stated that the federal government should consider other solutions, including injecting capital into banks is small. Another step is to buy troubled assets or loan guarantee. However, at the Congress session last fall, Finance Minister Timothy Geithner said the move was not realistic for large-scale bank review until a more detailed level. Meanwhile, real estate research firm Foresight Analytics states that berasarkan research, the potential losses in U.S. banks could reach $ 50 billion or about 60 percent of problem loans.

This figure is based on the lower apartment prices, office and industrial properties throughout the United States last year. “Losses housing sector is already happening,” said JPMorgan Chase Chief Executive Jamie Dimon. The threat of bad debts, the housing sector also came after the U.S. unemployment rate did not much go from level 10 down persen.Akibatnya consumer spending and weaker so that spurred a credit suspend debtor. “Members of businessmen only took office and the consumer does not buy barangbarang at retail stores,” said Executive Director Burnham-Moores Center for Real Estate University of San Diego Mark Riedy.

He considers, that fact will affect thousands of communities and national and regional banks holding approximately USD860 billion of commercial mortgage loans and construction loans.