Less regulation for smaller banks has created an opportunity for them to do more CRE loans. : Small and mid-cap banks are carving out a bigger foothold in commercial real estate lending—and they are competing more aggressively to win deals. A recent market update from Fitch Ratings highlighted the shift in market share that is tilting more in favor of banks below $100 billion in assets. “We’ve seen a real differential where the smaller banks have been more willing to do commercial real estate lending than the larger banks,” says Joe Franzetti, a senior vice president at Berkadia.