The Congressional Oversight Panel reported Wednesday that commercial real estate loan failures could jeopardize bank stability.

The panel said most of the bad loans were made at the height of the real estate bubble and are concentrated at smaller banks, which make 40 percent of all small business loans.

We haven't seen the worst of the problems yet in terms of loan defaults. This is a large issue for a major portion of the banks out there, said Matthew Anderson, a partner at research firm Foresight Analytics, which provided data for the report.

Source: MarketWatch, Josh Lipton