Bank of America boss says real estate repricing will be a ‘slow burn’

Brian Moynihan, chief executive officer of Bank of America. Photo: Jeenah Moon/Bloomberg

Katherine Doherty and Bre Bradham

Bank of America's chief executive officer Brian Moynihan said it will take time for the banking industry to work through issues with commercial real estate loans, after a New York regional lender alarmed investors with its exposure in the troubled sector.

"Commercial real estate is a slow burn, it's a classic burn," Mr Moynihan said. "The trading attitude, which is these assets have to move at a price tomorrow morning, isn't the way the banking system works."