Authors: Matteo Crosignani and Saketh Prazad
-
-
The Teller Window is a publication featuring expert knowledge and insight from the New York Fed, including thoughts and perspectives from senior leaders.
Do you have a request for information and records? Learn how to submit it.
Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
-
-
-
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
-
-
-
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
-
-
Staff Reports
Extend-and-Pretend in the U.S. CRE Market
Number 1130
October 2024 Revised June 2026
October 2024 Revised June 2026
JEL classification: G21, E51, R33
We show that in the post-pandemic period, weakly capitalized banks provided maturity extensions and granted payment relief to distressed commercial real estate (CRE) borrowers to preserve capital, leading to credit misallocation and a buildup of financial fragility. Using supervisory data, we detect this “extend-and-pretend” behavior in CRE mortgage lending and in bank lending to REITs exposed to distressed CRE. These maturity extensions increased the stock of CRE mortgages maturing in the near term, raising the risk of large losses materializing over a short period. Extend-and-pretend is also associated with reduced origination of new CRE mortgages and C&I credit to firms.
Author Disclosure Statement(s)
Matteo Crosignani
I declare that I have no relevant or material financial interests that relate to the research described in the paper titled “Extend-and-Pretend” – Banks and Distressed CRE.
Saketh Prazad
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.
I declare that I have no relevant or material financial interests that relate to the research described in the paper titled “Extend-and-Pretend” – Banks and Distressed CRE.
Saketh Prazad
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.
Suggested Citation:
Crosignani, Matteo, and Saketh Prazad. 2024. ” Federal Reserve Bank of New York Staff Reports, no. 1130, revised June 2026. https://doi.org/10.59576/sr.1130
Crosignani, Matteo, and Saketh Prazad. 2024. ” Federal Reserve Bank of New York Staff Reports, no. 1130, revised June 2026. https://doi.org/10.59576/sr.1130
By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement. 
