Associated Press - November 15, 2009 3:14 PM ET

BOISE, Idaho (AP) - Idaho financial regulators are monitoring loans by state-chartered banks to commercial real-estate developers on concern the recession could result in a wave of foreclosures.

State-chartered banks' commercial real estate loans grew from about 6 percent of their loans in 1994 to about 18 percent in the second quarter of this year, the Idaho Statesman reported Sunday.

Just as residential real-estate values have plunged, the same problems exist for commercial real-estate owners who are struggling to keep tenants in their buildings.

Gavin Gee, Idaho Department of Finance director, said it's not completely clear just how big such a problem this could become in Idaho, but wants to say on top of things.

He says, "If you have a bank that has a lot of commercial loans, it obviously becomes a concern in a down market."

Information from: Idaho Statesman, http://www.idahostatesman.com

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