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    Question

    Which of the following would NOT be classified as

    Commercial Real Estate (CRE) exposure?
    A Construction finance for a mall Correct Answer Incorrect Answer
    B Funding purchase of land for IT park development Correct Answer Incorrect Answer
    C Loan to a builder for residential flats sold to individuals Correct Answer Incorrect Answer
    D Loan for warehouse construction for own business use Correct Answer Incorrect Answer
    E Loan against rent receivables from commercial building Correct Answer Incorrect Answer

    Solution

    CRE exposure involves repayment dependent on real estate prices. If a warehouse is used for the borrower’s own operations, it’s not CRE.

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