Texas Pension Fund's Bets on Regional Banks Turn Sour, $1 Trillion CRE Debt Maturity Threatens Bank Failures, Delinquency & Charge-off Rates

Texas Pension Fund's bets on regional banks have turned sour as concerns rise over the delinquency rate on credit card loans at commercial banks. The charge-off rate has climbed to its highest level in over ten years, reaching 60 basis points in Q4. Policymakers are warned that the approximately $1 trillion of commercial real estate debt coming due this year may not be as 'manageable' as previously thought, potentially leading to a crisis. This looming debt maturity could result in hundreds of bank failures.