Yep, the issue is that recalculating DSCR doesn't happen on the right timescale to incentivize reducing rents, instead incentivizing keeping vacancies open and using a pro forma DSCR.

The banks know this is a structural issue, but are likewise incentivized to keep "strong assets" on their balance sheet, rather than a bunch of troubled assets bound for default.

The claim isn't that they can keep this up forever, it just needs to last another quarter, every quarter.

The shell game is both parties knowing that the cups are all empty but still playing because it's better for them both to do so.