Large U.S. Banks Expected to Post a Significant Increase in Loan Losses

Published on July 14, 2023

After three years of relatively low loan defaults, the negative effects of inflation and higher interest rates are weighing on borrowers. Bloomberg expects the six largest U.S. banks to write off $5 billion in loans for the second quarter, and set-aside another $7.6 billion for future credit losses. These amounts are roughly double those for the second quarter of 2022.

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