Commercial banks – I Have 50 Dollars Fri, 24 Jun 2022 14:30:17 +0000 en-US hourly 1 Commercial banks – I Have 50 Dollars 32 32 Commercial banks resume payment of dividends Fri, 24 Jun 2022 14:30:17 +0000
Anne Juuko, Managing Director of Stanbic Bank Uganda. Picture file

Kampala, Uganda | THE INDEPENDENT | Shareholders of banking services companies will start receiving dividends for their investments within a month, for the first time since 2019.

Stanbic Bank Uganda and Bank of Baroda will be the first to pay dividends to their shareholders, effective July 24 and August 4, 2022 respectively, according to notices to their shareholders.

Dividend payments were suspended by the Bank of Uganda at the onset of the COVID-19 pandemic in early 2020 when the closure of most business activities led to a general economic downturn.

This decision by the regulator was aimed at ensuring that commercial banks maintain adequate working capital as well as sufficient liquidity to maintain the solidity of the sector.

Late last month, the BOU said it was lifting the blanket ban to allow willing banks to proceed with dividend payments, but that would be on a case-by-case basis.

This would be after the respective bank provided sufficient evidence that the payment of the proposed dividends would not affect the soundness of the bank in terms of carrying out its operations. Bank of Baroda has set aside 25 billion shillings for the year 2020.

“Shareholders at the Annual General Meeting on August 26, 2021 passed a resolution approving the payment of the dividend proposed by the Board of Directors at the rate of Uganda Shillings 10.00 per share for the financial year 2020, subject to the Bank of Uganda approval,” said Anne Tumwesigye Mbonye, ​​Corporate Secretary of Bank of Baroda.

She said that last week the Bank of Uganda sent a letter of “no objection” to the Bank of Baroda’s request to pay 25 billion shillings, which will now be made on August 4. On what will happen in 2021, the bank’s management says this will be concluded at the next AGM scheduled for next month. “Part of the agenda for the 52nd AGM will be to consider and, if deemed appropriate, approve the payment of the dividend proposed by the Board of Directors at the rate of 10.00 Ugandan shillings per share for the 2021 financial year.”

Bank of Baroda’s net profit for 2020 was 83.37 billion shillings and increased by 8.23% to reach 90.23 billion in 2021. Baroda shareholders hope they will receive all their dividends for all years, although this and the amounts at stake always depend on the results of subsequent general meetings and the assessments of the Central Bank.

BOU’s authorization to Bank of Baroda to pay dividends for the years ending December 2021 and December 2020 was “subject to the timing of payments over a three-month period commencing July 2022. The dividend for the 2021 financial year will be paid on or before November 21, 2022, to shareholders of record at the close of business on November 07, 2022, at the rate of Uganda Shillings 10.00 per share,” the company secretary said.

For its part, Stanbic Bank has elected to pay dividends for the year 2021 and has also proposed to pay the dividends for 2022. “After receiving shareholder approval and authorization to take the necessary steps to declare and make the payment of dividends, the of Stanbic Uganda Holdings Ltd (SUHL) hereby declares a combined dividend of UGX 1.95 per share payable in respect of the final dividend for the year ended 31 December 2021 and the interim dividend for the year 2022,” says a note to the Financial Statement for 2021. The bank did not discuss the fate of the 2020 dividend.

“On or about Monday, July 25, 2022, the dividend will be paid (net of withholding tax) electronically to the designated bank accounts or mobile money wallets of eligible shareholders,” Stanbic said in a note to shareholders. .

Since last year, Stanbic Bank chief executive Anne Juuko has assured the company’s shareholders that it is ready to pay dividends, but that they must comply with the regulator’s guidelines.

“As such, the bank’s proposed 2020 dividends, which form the pool of dividends to be paid to Stanbic Uganda Holdings shareholders, remain under review by BOU, the results of which will inform the directors’ 2021 dividend recommendation. to Stanbic Uganda Holdings shareholders,” Board Chairman Japheth Kato said in a statement.

However, at the general meeting, shareholders said they had not heard of the 2020 dividend. “The 2020 dividend was quietly swept under the rug as management announced the dividends for 2021 and the proposals for 2022,” said a shareholder who sought to know the fate of past returns (2020).

Stanbic says it has been authorized by the BOU to pay out 100 billion shillings declared as dividends for the years 2021 and 2022. This will be divided into two tranches of 50 billion shillings for the final dividends of 2021 and 50 billion as dividends. interim dividends for 2022.

In his response, BOU’s executive director of supervision, Twinemanzi Tumubweine, said bank managers can decide how much to pay based on their measure of the strength of the business, their immediate needs and the economic situation.

“Look at the provisions in Stanbic’s financial statements, look at their balance sheet for 2020 and 2021, you’ll notice one thing, the amount of specific provisions has increased by almost 100%. In other words, instead of paying dividends, they chose to retain them to cover and reimburse depositors in the event of bad debts on their balance sheet, which is normally a prudential decision. And it was prudent to withhold dividends from 2020, use them to increase their ability to absorb losses in 2021, and just declare a small dividend for 2021 and pay an installment for 2022,” Tumubweine said.

Stanbic says they will post a detailed explanation next week. According to Stanbic’s financial statements, the company made after-tax profits worth 243 billion shillings in 2021, up from 258 billion in 2020. They are expected to pay a dividend of 1.95 shillings per share, up from 2.15 shillings paid in 2019.



Reduce “ridiculous” high interest rates – Kennedy Agyapong to commercial banks Thu, 23 Jun 2022 10:26:20 +0000

Kennedy Agyapong, MP for Assin Central

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Businessman, Kennedy Agyapong has called on commercial banks operating in the country to cut their interest rates to help boost economic activity and business.

According to him, these interest rates have made it almost impossible for local business owners to compete with foreign-based business owners.

Speaking in an interview with students from the School of Business at the Kwame Nkrumah University of Science and Technology (KNUST), the Assin Central lawmaker called the high interest rate regime of commercial banks a “very ridiculous”.

“Interest rates in Ghana are very ridiculous and make it virtually impossible for local businesses to compete favorably with foreign companies,” he pointed out.

He further indicated that most commercial banks also added their profit margins to the loans they extended to businesses – a move that led to further interest rate hikes.

“Many companies have complained about this and the high interest rates are one of the reasons why most Ghanaian companies prefer to import finished products, instead of producing them locally,” he added.

The Assin Central legislator, referring to the establishment of the Development Bank of Ghana, suggested that the non-custodial institution should deal directly with businesses instead of lending money to commercial banks to lend to businesses.

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“Ghana’s commercial banks are not supporting agriculture enough” Tue, 21 Jun 2022 14:25:49 +0000

Ghana’s Minister of Agriculture, Owusu Afriyie Akoto, said that although the government had done its best to boost food production by subsidizing the prices of agricultural inputs, such as chemicals, banks had not granted enough loans to complete this effort.

This, according to the minister, had made the prices of foodstuffs and other agricultural products high in the market. Therefore, the government will soon ask parliament to propose legislation requiring commercial banks in the country to allocate 20% of their loan portfolio to farmers, he said.

Dr Akoto said that to address the issue of financial challenges faced by farmers, legislation was being sought to compel commercial banks to extend at least 20% of their loan portfolio to farmers. This, he said, would boost food production and at the same time make food prices affordable for Ghanaians.

The Minister, who spoke passionately about the issue, pointed out that in India, for example, for the past 30 years, it was mandatory for banks to allocate a certain amount of their loans to farmers to support the agriculture in this country.

“What we need to do as a country is force commercial banks, through legislation, to allocate resources to support farmers and agriculture as a whole,” he said.


liabilities and net worth of commercial banks? – Mon, 06 Jun 2022 05:18:47 +0000

The main source of bank liabilities is its capital (including cash reserves and, in many cases, subordinated debt). This can come from a domestic or foreign source (corporations and businesses, individuals, other banks and even governments).

How much is commercial banking worth?

the commercial bank in US market size in 2022

U.S. Commercial Banking Market Size Annualized Growth 2017-2022

Purchase this report or a subscription to unlock our data for this industry.

United States Commercial Banking Market Size Growth 2022-2027

What is the value of bank equity?

A bank’s net worth, or equity, is the sum of its total assets minus its total liabilities. When the account balance T falls below zero, the total net worth of the liabilities is included.

What are the bank’s assets and liabilities?

It consists of cash, government securities, and interest-bearing loans (such as mortgages, letters of credit, and interbank loans). The liability section of a bank includes loan loss reserves and any debt it has.

What are bank liabilities and assets?

In other words, assets are property owned by the bank. Loans, securities and reserves are all examples of such assets. A bank’s liabilities include deposits and Bank loans other institutions that it owes to another party. A capital is an abbreviation for net worth, equity or bank capital.

What are the main assets and liabilities of a commercial bank?

A commercial bankThe main liabilities of are deposits, while its main assets are loans and bonds. According to the US Banking Act of 1971, a commercial bank is defined as a bank that offers demand deposits and makes loans. Therefore, a money market mutual fund is not a commercial bank because it does not make loans.

What are the liabilities and assets of commercial banks in India?

  • The equity of banks can be represented by their capital and their reserves.
  • Loans:
  • Other liabilities:
  • You have to give the money at the end of the short notice period.
  • Investments:
  • Discounted loans and advances and purchased invoices are examples of discounted or purchased loans and advances.
  • What is the value of the banking sector?

    According to data published by the International Monetary Fund, the global banking industry had a market capitalization of 7.5 trillion euros in the second quarter of 2021.

    How many commercial banks are there in the world?

    What is the size of the banking and financial sector?

    In 2020, the global financial services market is expected to reach $20,490.46 billion, and it is expected to reach $22,515.17 billion by 2021 at a compound annual growth rate (CAGR) of 9.9%.

    Is money in the bank part of net worth?

    Cash in your bank account, including checking accounts and savings accounts, can be included in your net worth calculation as one of the assets. A fund balance is a variety of investment account balances, such as 401(k) or Individual Retirement Account (IRA) fund balances.

    How to calculate the net worth of a bank?

    When all liabilities are included in an asset, the net worth of a business is calculated. A liability is something that depletes resources such as loans, accounts payable (AP), and mortgages, while an asset is something that has monetary value.

    How much money is there in the banks in the United States?

    According to the FDIC, there are 4,987 banks in this report. Our database only contains the top 250 banks by deposits. Banks in the United States have an average of $31 billion in deposits, a figure that has increased significantly for the four largest banks. Total deposits are estimated at $201 million, according to the most recent statistics.

    Which bank has the highest net worth?

    What are bank liabilities and examples?

    A bank will accept deposits made in a checking account, savings account, or certificate of deposit, essentially, as a liability. Accordingly, it is the responsibility of the bank to return these deposits to its customers when they withdraw funds from it.

    The main liabilities of commercial banks are ? – Sun, 29 May 2022 02:37:05 +0000

    The bank’s most significant liabilities are capital (mainly cash reserves and, in some cases, subordinated debt) and deposits. It can be obtained from domestic or foreign sources (companies, businesses, individuals, other banks and even governments).

    What is the greatest responsibility of a commercial bank?

    The bank is most vulnerable to deposits due to money market accounts, savings accounts and checking accounts.

    What are the main assets of commercial banks?

    commercial banks‘ The main assets are commercial loans and deposits.

    What are liabilities for a bank?

    Bank liability is a collection of items, including bank deposits and bank loans, that the bank owes to another party. The term “capital” is also used to refer to a company’s financial assets, including stock options, preferred stock, and bank equity.

    What are the liabilities of Mcq banks?

    Banks are responsible for deposits and loans are assets. Customers must repay deposits on demand or when due. What do you think of this Quora answer?

    Which of the following are the liabilities of commercial banks?

  • Bank assets are classified as capital and reserves respectively.
  • Loans:
  • Other liabilities:
  • Short notice: the following is a method to receive money at the time of a call.
  • Investments:
  • These types of loans, advances and bills are available at discounted or purchased rates.
  • What is the largest commercial bank in society?

    The correct answer is that State Bank of India is the trusted bank. The State Bank of India is the oldest commercial bank in the Indian subcontinent and was founded in 1806 by the Imperial Bank of India.

    Which of the following are liabilities to a bank?

    The bank is responsible for the loan because it owns the loan, while the bank is responsible for the deposits because it owns the loan.

    What are the main assets and liabilities of a commercial bank?

    A commercial bank’s main liabilities are deposits, while its main assets are loans and bonds. A commercial bank is defined as a bank that offers demand deposits and makes loans under the United States Banking Act of 1971. A money market mutual fund is therefore not a commercial bank because it does not lend money. ‘silver.

    What are the three main assets of commercial banks?

    How important are three main assets in a bank? Cash, safe deposit boxes and reserve deposits are the other types of liquidity.

    What is the most important asset of commercial banks?

    A typical bank’s largest asset, the loan, and the largest liability, the deposits, are the same.

    What are the major assets and major claims on a commercial bank’s balance sheet?

    Liabilities and equity are used to describe a claim on the assets of an entity. An asset-based balance sheet for a commercial bank differs from a traditional balance sheet in that it typically contains inventory, accounts receivable, and fixed assets, but it also contains loans and investments as major assets.

    What are examples of bank liabilities?

    Here are some examples of bank liabilitiessuch as mortgage payments for the building, stock distribution payments to customers, and interest on savings and certificates of deposit.

    What are the assets and liabilities of a bank?

    A bank’s assets include cash, government securities, and interest-bearing loans (such as mortgages, letters of credit, and interbank loans), as well as capital. The bank’s liability section includes any debt or loan loss reserve that the bank may hold.

    What are some examples of passives?

  • Bank debt.
  • Mortgage debt.
  • Accounts receivable (due) is money that is owed to suppliers.
  • Wages due.
  • Taxes due.
  • What is the formal assurance process for asset/liability management?

    Asset/Liability Management Understanding the Asset/Liability Management Process The process should ensure that assets are available to pay debts as they arise and that income or assets can be converted into cash. The assets recorded on the balance sheet are classified into various categories according to the principles of asset/liability management.

    Commercial bank deposits rise 2.4% to QR 967.7 billion in March Sun, 08 May 2022 05:07:00 +0000

    Doha: Qatar’s banking sector continued to record robust growth in March as the country’s commercial banks recorded an increase in deposits and credit facilities, according to the latest data released by the Planning and Statistics Authority (PSA).

    According to the report, cash equivalents including commercial bank deposits in Qatar stood at QR 967.7 billion in March, an increase of 0.3% from QR 964.5 billion in March. previous month (February 2022). On a year-on-year (YoY) basis, total commercial bank deposits increased by 2.4% from QR 945.2 billion in the same period last year (March 2021).

    Similarly, the total broad money supply (M2) recorded around QR 632.9 billion in March 2022, an annual increase of 3.3% compared to March 2021. One of the main variables in this question is the increase in the value of the shares traded at a monthly rate. of 72.8%, faced with an increase in the general market index (point) at a monthly rate of 4.5% compared to the previous month (February 2022).

    In addition, commercial bank credit facilities in Qatar increased by 0.4% compared to February 2022 and registered an annual increase rate of 3.5% compared to March 2021.

    Commercial banks spend N536 billion on staff salaries, wages, EcoBank, Access lead Mon, 02 May 2022 07:00:00 +0000

    Data shows that 11 Nigerian banks in 12 months incurred more than N536.09 billion on salaries and wages of their staff.

    The figure was obtained from the annual results of banks submitted to the Nigerian Stock Exchange.

    Banks surveyed include Eco Bank, First City Monument Bank (FCMB), Fidelity Bank, Guaranty Trust Holding Company (GTCO), Jaiz bank.

    The others are Zenith Bank, Wema, Unity, United Bank for Africa (UBA) and Sterling Bank.

    First Bank has not yet published its 2021 annual results.

    According to the data, EcoBank paid the most in wages and salaries since it operates in many African countries, while Fidelity paid the least among the banks surveyed.

    EcoBank spent N183.8 billion, followed by N91.19 million for Access Bank.

    Also read: Commercial bank borrowing from CBN drops for second consecutive month

    UBA comes third with N86.5 billion in wages and salaries for 6,634 staff.

    Zenith Bank has spent N70 billion and said in its report that it will have 7,517 employees by the end of December 2021.

    GTCO follows with 33.2 billion naira for 4,617 employees, followed by FCMB with 23.2 billion naira.

    Sterling Bank – N13.6 billion, Wema N12.2 billion, Unity Bank – N10.1 billion, Jaiz bank – N6.7 billion and Fidelity Bank – N5.52 billion.

    The National Bureau of Statistics (NBS) in its latest banking report revealed that in the fourth quarter of 2020, there were 95,026 workers in the banking sector.

    Among them, 257 are managers, 17,381 managers, 37,590 subordinates and 37,590 contract employees.

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    RBI updates LCR guidelines for commercial banks Sat, 30 Apr 2022 07:00:00 +0000

    Banks can include government securities worth up to 16% of their NDTL in their LCR calculations, up from 15% under previous guidelines.

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    Commercial bank deposits hit QR 964 billion in February Thu, 28 Apr 2022 06:03:00 +0000

    The banking sector in Qatar showed resilience and recorded growth in February. Commercial banks in Qatar saw an increase in deposits and credit facilities year-on-year in February 2022 according to data from the Planning and Statistics Authority.
    Public sector deposits stood at QR 279.5 billion in commercial banks in February 2022, compared to their counterpart in the previous year (February 2021), amounting to QR 257.8 billion, showing an annual growth of 8.4% and a decrease of 0.4% on a monthly basis. On the other hand, private sector deposits last year for the same period amounted to QR 418.8 billion, registering an increase of 3.9% and 2.7% monthly and annually.
    Non-resident deposits in commercial banks in February this year stood at QR 266.2 billion from QR 251.5 billion registering a growth of 5.8% on an annual basis and a decline of 2, 1% month-on-month. Total commercial bank deposits in February 2022 amounted to QR 964.5 billion compared to QR 912.4 billion registering a 5.7% increase year-on-year.
    According to official data, credit facilities of commercial banks in Qatar in the public sector in February 2022 reached QR 369.1 billion, representing an annual and monthly decline of 2.1% and 1.5% respectively. While private sector credit facilities in the same month stood at QR 722.7 billion, registering an increase of 9.7% and 0.4% on an annual and monthly basis respectively.
    In the case of credit facilities for non-residents, commercial banks recorded a decline of 7.8% and 0.3% in February 2022 on an annual and monthly basis. The country’s total commercial bank credit stood at QR 1,210.8 billion in February 2022, compared to QR 1,156.2 billion in the same month of 2021, an increase of 4.5% annually.
    Commercial banks in Qatar recorded an annual increase of 5.7% and 4.7% in total deposits and total credit facilities.
    The money supply1 (M1) amounted to QR 162.9 billion in February 2022, showing an annual and monthly increase of 3.1% and 5.9%. While money supply2 (M2) recorded around QR 630.9 billion in February 2022, compared to QR 598 billion in the same period of 2021, an annual and monthly increase of 5.5% and 3.1%. The money supply3 (M3) stood at QR 712.3 billion, registering a growth of 5.6% and 1.4% on an annual and monthly basis.

    Commercial banks remain competitive but cautious in CRE Wed, 27 Apr 2022 21:33:27 +0000

    With so many lenders vying for commercial real estate transactions, commercial banks have had to become more flexible and offer financing structures that match their rivals.

    KeyBank, for example, offers financing formulas similar to those offered by private equity firms and life insurance companies. This includes on- and off-balance sheet products, according to Andrew Lucca, executive vice president of KeyBank Real Estate Capital.

    In addition, he often makes agreements with these shops according to the needs of their customers.

    Investors are pouring money into real estate as a hedge against inflation and an alternative to low bond yields. Meanwhile, other investors are looking to cash in before interest rates rise under pressure. Commercial banks are ready and willing to finance a fair share of these transactions.

    “There’s a lot of capital and a lot of motivated sellers,” said Gregg Gerken, executive vice president and head of commercial real estate at TD Bank. “Everything is for sale at the right price across the range.”

    Development of the 23Springs offices of Granite Properties in Dallas. Photo courtesy of Granite Properties

    The struggle for market share

    Banks face fierce competition at a time when CBRE forecasts a 10% year-over-year increase in commercial real estate investment in 2022.

    “We are seeing an avalanche of capital entering the market from US and global institutional investors, private equity funds and insurance companies,” noted Michael Riccio, senior managing director of debt and structured finance at CBRE.

    This means growing competition for banks from investment banks, private equity firms and insurance companies.

    The availability of capital and the search for yield have become so arduous, Gerken noted, that debt funds are now willing to take a lower yield to win business.

    “Their spreads were 400 basis points, and now they’re down to between 150 and 200 basis points,” he said.

    CBRE’s Q4 2021 survey offers insight into the evolution of market share in the commercial real estate lending market.

    The survey, an analysis of CBRE’s total issuance count, found that banks were the second most active lending group during the fourth quarter, increasing their share of non-agency lending volume to 29% from 24 .5% the previous year. Bridge loans accounted for 38.5% of banks’ loan volume, while permanent loans accounted for 35% and construction loans 21%.

    Alternative lenders such as debt funds and mortgage REITs held the largest share of non-agency loan closings in the fourth quarter of 2021 at 37.7%.

    Life insurance companies’ share of commercial mortgage closings fell to 14.8% in the fourth quarter from 20.2% in the third quarter of 2021.

    CMBS issuance represented 18.5% of total loans in the fourth quarter of 2021, compared to 10.5% in the same period last year.

    Development of the 23Springs offices of Granite Properties in Dallas. Photo courtesy of Granite Properties

    Fuel for growth

    What are the drivers that will continue to fuel commercial real estate lending this year? According to Lucca, you can expect to see more acquisition activity as sellers worry about the economy and asset values.

    “People are realizing they could get the best value if they sell now because valuations are at all-time highs and interest rates are still low,” he explained.

    The most active sectors for commercial banks – and for investors – will continue to be industrial and multi-family due to strong demand and income growth.

    “We see no signs of a slowdown in these two favored asset classes,” noted Al Brooks, head of commercial real estate for JPMorgan Chase.

    The value equation for investors in these types of properties has helped thwart large moves in cap rates.

    “It’s like a tale of two cities,” Riccio said. “On the institutional side, there has been no change in capitalization rates. But for small equity trades under $10 million that typically use more debt as leverage, borrowing rates are a bit higher.

    One Madison Avenue a skyscraper being redeveloped near Madison Square Park in New York City. Photo courtesy of SL Green

    Refinances should also become increasingly popular as investors race to outpace the rise in the yield curve, Lucca predicts.

    Construction finance, however, is an area where bankers remain cautious due to inherent risks such as labor shortages, supply chain disruptions and the rising cost of building materials. .

    “Construction financings are also expected to be more challenging this year as floating rate indices rise as the fed funds rate continues to climb,” noted CBRE’s Riccio.

    One Madison Avenue a skyscraper being redeveloped near Madison Square Park in New York City. Photo courtesy of SL Green

    At KeyBank, they hedge their risk in this lending category. “We limit the amount of development we fund and make sure costs are locked in upfront due to inflation and supply issues,” Lucca revealed.

    Some banks, on the other hand, continue to actively seek construction loans. Bank OZK, the regional powerhouse in Little Rock, Ark., was one of the most ambitious construction lenders last year, and it doesn’t seem to be slowing down.

    Among its construction loans this year are a $540 million loan with Carlyle Group for a 1,000 square foot mixed-use project on New York’s Fifth Avenue and $800 million for a condo tower in New York City. Upper West Side in February; and a $236 million loan for an office development in Dallas in April. (The bank also signed a 110,029 square foot lease for a new regional headquarters in the Dallas property building.)

    During Bank OZK’s fourth quarter earnings call, Chairman and CEO George Gleason said the bank sees the opportunity to make its biggest loans yet by lending on several of the complex mixed-use projects. who will seek funding in 2022 and 2023.

    It remains to be seen whether those estimates will be adjusted in the bank’s first quarter 2022 earnings call.

    Redevelopment and non-development

    One potential area of ​​increased activity for banks and other lenders is office redevelopment. Businesses need state-of-the-art amenities to attract employees to the workplace, and landlords need their buildings to stay relevant. Features sought by tenants include better indoor air filtration, fitness centers, outdoor spaces, private terraces and shared rooftops.

    “This became a noticeable trend in the fourth quarter of last year and will continue through 2022,” said Steven Durels, executive vice president and chief leasing and real estate officer at SL Green Realty Corp. “And that doesn’t just happen in Class A office buildings, but also in Class B buildings that are close to public transit.”

    In March, SL Green announced that IBM would consolidate nine New York offices into One Madison Ave. upgraded in the Flatiron neighborhood of Manhattan.

    SL Green funded the $1.25 billion redevelopment just before the pandemic hit with a facility led by Wells FargoTD Bank, Goldman Sachs, Bank of America and Axios Bank.

    Read the May 2022 issue of CPE.