Federal Reserve Bank of New York president William Dudley Monday evening said commercial real estate loan problems are continuing to hurt small and medium-sized banks and, in turn, care affecting credit availability for both consumers and small business. 

Those problems are apt to persist “for some time to come,” he said.

Dudley, in remarks prepared for the Reserve Bank of Australia’s 50th Anniversary Symposium in Sydney, said the “raging” financial crisis seems to be over, but the work of strengthening the global financial system to prevent future crises is “not close to complete.”

“The U.S. financial system is in much better shape today than it was a year ago,” according to Dudley, who went on point out a number of areas that saw improvement.

“The capital markets are generally open for business — with the important exception of some securitization markets — and the major securities dealers that survived the crisis have seen a sharp recovery in profitability,” he said.

— Market News International

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