(Updates with new paragraphs 2-5, U.S. exposure in paragraph 5, background in paragraph 2,3; bonds in penultimate paragraph)

FRANKFURT, Feb 8 (Reuters) - Deutsche Pfandbriefbank (PBB) on Thursday tried to reassure investors that it has enough funds to cope with a downturn in the U.S. commercial real estate market, as the German lenders' shares and bonds fell again.

PBB, listed on the small-cap SDAX index, is heavily focused on the real estate industry, and its update on Thursday was the second unscheduled announcement in two days from the lender as its shares and bonds come under pressure. On Wednesday it described the U.S. market as "the greatest real estate crisis since the financial crisis".

Higher interest rates, refinancing difficulties and lower office occupancy due to widespread adoption of remote working have hit the U.S. commercial real estate sector in recent months, and a renewed selloff in some U.S. regional banking shares this week has reignited fears about who is exposed.

Last week Deutsche Bank hiked its provisioning for badly performing commercial real estate loans in the U.S.

PBB's exposure to the U.S. real estate market is 5 billion euros, or 15% of its portfolio, the bank has said.

PBB said in a statement on Thursday its liquidity was twice the amount required by regulators.

"Due to our high liquidity, we are able to operate without new unsecured funding for more than 6 months," it said.

PBB said its liquidity coverage ratio (LCR) stood at 212%, 112 percentage points above the regulatory requirement of 100%.

It also said that retail deposits continued to grow and were now above 7 billion euros ($7.53 billion).

Concerns over possible damages stemming from PBB's U.S. commercial real estate exposure have led to a record slump in its share and bond prices this week.

Its shares were down 3% early Thursday afternoon, making for a 27% decline so far this year.

Deutsche Pfandbrief's 150-million euro 2027 bond was last around 58.48 cents, little changed on the day, but down from 70.429 at Tuesday's close.

On Wednesday the bank reported an increase in risk provisions in the fourth quarter.

($1 = 0.9294 euros) (Reporting by Danilo Masoni and Tom Sims Additional reporting by Tommy Reggiori Wilkes in London Editing by Miranda Murray and Elaine Hardcastle)