Addressing commercial real estate lending risks with borrower-based measures

This paper explores ways in which borrower-based measures (BBMs) could be applied to commercial real estate (CRE) lending, focusing on suitable metrics and scope. BBMs have already proven to be effective in mitigating credit risks in residential real estate lending by curbing excessive credit growth, limiting high-risk loans and strengthening lender resilience. However, implementing these measures in CRE lending is m…