The lack of availability of terrorism cover since September 11 hasn’t stopped US banks from lending money for commercial projects. A survey of senior loans officers at major US banks and US branches of foreign banks was conducted by the US Federal Reserve.

It found that of the domestic banks which “received applications for loans to finance high-profile commercial real estate properties since the events of September 11, 90% indicated that their rejection rate on these loan applications stayed about the same”.

Despite some borrowers being unable to get affordable insurance against acts of terrorism, almost 80% of domestic banks and more than 70% of foreign institutions indicated they had experienced little or no change in demand for loans to finance high-profile and heavy-traffic properties.