South Florida banks are dedicating a smaller percentage of their assets for real estate loans, a new study shows.
The 65 banks in Miami-Dade, Broward and Palm Beach counties used 18 percent of their assets for mortgages as of the end of 2013, according to bank analyst Ken Thomas. Back in 2006, when the real estate market was still robust, the tri-county area had 79 banks allocating 36 percent of their assets for loans.
“This is a huge difference and can be roughly interpreted to mean that it is twice as difficult now vs. in 2006 to get such a loan from a South Florida-based bank,” Thomas told the Sun-Sentinel in an e-mail.
Nationally, banks used 16.5 percent of their portfolio for mortgages at the end of 2013, down from 23 percent at the end of 2006. [Sun-Sentinel] — Eric Kalis