CITIZENS FINANCIAL GROUP, INC. 
(MT Newswires) -- Bruce Van Saun, CEO of Citizens Financial Group, says the problems faced by the banking industry last year have largely been resolved. He notes that some bank failures were due to aggressive corporate strategies and overly rapid growth, problems that were exacerbated by the Federal Reserve's (Fed) rapid rise in interest rates.
Bruce Van Saun notes that the regional banks managed the interest rate risk well, which helped to stabilise deposits over the year, leading to a return to normal. He was surprised by the problems at New York Community Bank (NYCB), which he regards as an isolated case, but which nevertheless created concern in the market, particularly for commercial real estate.
He points out that unrealized losses in commercial real estate have not yet been fully recognized and that some banks may have to increase their provisions. For Citizens Financial Group, Van Saun says that their commercial property portfolio is in good shape, although they are particularly focused on the office sector, which is under pressure due to a slow recovery and higher interest rates.
