The headlines covering the challenges for New York Community Bank (NYCB) have reignited concerns about bank CRE exposure and the health of the U.S. financial system. NYC's rent controls have prevented property owners from raising rents to counteract the effect of higher interest rates, leaving NYCB exposed to credit risk within its $37 billion multifamily portfolio. In 2019, New York also passed the Housing Stability and Tenant Protection Act (HSTPA) of 2019, which provided additional protections for renters, including tighter restrictions around how much landlords can raise rents after making improvements. While we expect stress for some smaller banks could result in additional consolidation, such as NYCB, we believe the overall banking sector is well capitalized.