“With a contraction in bank liquidity and lending and an increased radar for bank stress testing from regulators due to the recent turmoil, banks with the highest [Commercial Real Estate] concentrations could see a pull-back on their lending books to allow their debt to roll off,” writes Trepp, an analyst specialising in securitized mortgages. As a result, there could be lower origination volumes in the coming months and years.
Fiat means decree, and fiat money is a currency that is decreed and backed by the government that issues it, meaning it is not backed by a commodity, such as gold or silver. This kind of currency has a short history as it arrived only in the 20th century (the only exemption were a few years in the 1860s in the US during the civil war, but that aside, fiat money was unknown in human history before 1913/14).
It has its name by the absence of this backing, but it has nothing to do with a threat to end one’s life or a cage or something.