The commercial real estate sector’s current quandary has precipitated a significant drop in regional bank stocks, stirring investors’ memories of the notorious Silicon Valley Bank downfall. What Happened: The KBW Nasdaq Regional Bank Index experienced its most severe drop since March, decreasing by 6%. This slump was primarily instigated by New York Community Bancorp, Inc. (NYSE:NYCB), which saw a nearly 40% drop following a Q4 loss of $260 million, consequent to distressed commercial real estate loans, according to a Business Insider report on Wednesday. Losses in the U.S. property market als…