More people may default on commercial property mortgages and loans, reaching a peak in 2010, according to Fitch.
The Telegraph reported that the international bank rating agency predicts further difficulties in 2011 and 2012.
Fitch said a material credit issue will be felt among large banks such as Royal Bank of Scotland when it comes to commercial property.
Managing director of the agency's financial institutions team Gordon Scott reported that many banks have not yet noted large writedowns on their property portfolios - even though asset values have significantly fallen.
But thanks to the negative equity of many loans there may be pressure on borrower cash flows, he added.
Resulting from this pressure could cause a reduction in the "overall supply of credit to the sector", Mr Scott predicted.
The banking industry expects a "wave of high loan-to-value debt" to mature between 2010 and 2014, the newspaper reported.
Fitch Ratings aims to give research, independent credit opinions and data to the world's credit markets, according to its website.
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