Loan-loss provisions

Goldman predicts bumpy recovery, says problem loans could rise in 2Q


The economic contraction caused by the coronavirus pandemic has been worse than the Wall Street firm had modeled two months ago, its president John Waldron said Wednesday.


Scotiabank earmarks $1.33 billion for bad loans in pandemic


The Toronto company also said it set aside 232 million this year for U.S. regulatory probes into the bank’s metals-trading practices and costs tied to the wind-down of that business.


Record reserves for bad loans set to gut Canadian banks' profits


The second-quarter jump in provisions may be three to four times higher than a year earlier and will be mostly for loans that have yet to go bad, analysts said.


Pad reserves or buy out a rival? BlackRock haul gives PNC options


The Pittsburgh company’s sale of its stake in the asset manager yielded billions of dollars that could cushion the pandemic’s economic blow and eventually help fund a big acquisition.


Auto loan market divides; have banks set aside enough for bad loans?


Lenders are throwing money at buyers with stable jobs while making it harder for weak borrowers to get loans; $50 billion in loss provisions may not be enough and could stifle lending.


PPP fee income will go straight to loan-loss reserves at many banks


The millions of dollars earned from Paycheck Protection Program transactions will help cover rising provision costs tied to the new CECL accounting standard and coronavirus shocks to loan books.


HSBC, Santander outpace rivals in boosting loan-loss provisions


The two lenders are being more aggressive than other European banks in putting a price on the economic devastation caused by the coronavirus outbreak.


Congress was right to freeze CECL


Banks would have drowned if lawmakers hadn't delayed the new accounting standard during the coronavirus pandemic.


JPMorgan's outlook for 2020: More pain ahead


Though hopeful for a second-half bounceback in the economy, JPMorgan Chase is prepared for 20% unemployment, lackluster GDP and losses in its loan portfolio that could reach tens of billions of dollars.


Will coronavirus lead to a wave of bank failures?


An uptick in closings is likely, but how many institutions go under and how fast will depend on a variety of factors, including the duration of the pandemic.