Banking real estate encompasses a wide range of properties that are owned, held, or managed by banks. These properties may include:

1. Foreclosed properties: These are properties that have been acquired by banks through the foreclosure process, typically as a result of a borrower defaulting on a mortgage loan. Banks may then resell these properties to recover their losses.
2. REO (Real Estate Owned) Properties: These are properties that have been acquired by the bank through foreclosure and are now owned by the bank. Banks may then resell these properties or keep them as investments.
3. Non-performing loans (NPL) properties: These are properties that serve as collateral for loans that are not being repaid by the borrower. Banks may foreclose on these properties and take ownership in order to recover their losses.
4. Commercial properties: Banks may also own and manage commercial properties such as office buildings, retail centers, and industrial parks. These properties may be leased out to generate income for the bank.
5. Development properties: Banks may also own and manage land that is being developed for residential or commercial use.
6. Special assets: Banks may also own and manage special assets such as hotels, golf courses, and other types of properties that require specialized management and expertise.

Banks may use the income generated from these properties to offset losses from non-performing loans, provide a source of revenue, or meet regulatory requirements.

Does it have a financial sense?

Using real estate as collateral for loans from banks or other financial institutions can make financial sense for borrowers in certain situations. The value of the real estate can be used to secure a loan, which can be used for a variety of purposes such as purchasing, refinancing, or making improvements to the property. This can provide borrowers with access to funds that they may not have otherwise had, allowing them to invest in or improve their property.

Additionally, using real estate as collateral can also make financial sense for banks and other financial institutions, as it provides them with a secure form of collateral for the loan. Real estate typically appreciates over time, which means that the value of the property is likely to increase. This can provide banks with added security in the event that the borrower is unable to repay the loan, as they can foreclose on the property and sell it to recover their funds.

However, it's important to keep in mind that using real estate as collateral also carries some risks. If the value of the property decreases, it could lead to a negative equity situation, where the value of the property is less than the outstanding mortgage. Additionally, if the borrower is unable to make payments, the bank could foreclose on the property, which can be a lengthy and costly process.

In conclusion, using real estate as collateral can make financial sense for borrowers in certain situations, but it's important to carefully consider the risks and benefits before making any decisions. It's always good to consult with a financial advisor to determine the best strategy for your specific situation.