Major U.S. Banks To Report Biggest Jump In Loan Losses Since COVID Pandemic

The major U.S. banks are set to report the biggest jump in loan losses since the COVID-19 pandemic, as rising interest rates put mounting pressure on borrowers across the country.
The quarterly reports are expected to show that some banks benefited from higher interest rates, with a boost in lending and investment income, but those that were reliant on investment banking, trading, and wealth management may now experience a more difficult environment.
After three years of relatively low defaults, partially owing to pandemic-era stimulus cash and other government assistance, lenders are now feeling the negative effects of higher interest rates and inflation on borrowers.
This is forcing many lenders to put aside more money than usual to deal with potentially bad loans, but those with more exposure to rising interest rates are expected to fare better.

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