NEW YORK—In the second quarter, three of the nation’s largest banks--JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo--all raised their provisions for credit losses from the prior quarter, a new report notes.
The provisions include losses for commercial real estate loans.
“The built-up stores show banks bracing for a riskier environment, where both secured and unsecured loans could create bigger losses for some of the nation’s largest banks,” Quartz reported.
What Analysis Revealed
The report added that a recent analysis of household debt by the New York Fed found that Americans owe a collective $17.7 trillion on consumer loans, student loans, and mortgages.
Credit card issuance and, subsequently, delinquency rates are also on the rise as people’s pandemic-era savings run out and they rely more and more on credit, Quartz added.