According to a recent report, the largest banks in America are experiencing a dramatic increase in substandard loans, which could lead to losses.
S&P Global reports that the amount of money tucked away in loans that show signs of weakness and risk, which could result in defaults, has just reached its maximum level since 2020.
JPMorgan Chase saw the biggest increase in the amount of loans that were criticized, as the total jumped 26.3% to $26.01 Billion at the end Q3.
Wells Fargo recorded an increase of 17.9% in the number of criticized loans from last year, totaling $37.6 Billion, while Bank of America saw a rise of 15.2%, or $26.06 Billion.
This brings the amount of the three banks’ criticized loans to $89.67billion since the third quarter of 2023. It reflects a pattern that is playing out across banks.
Four lenders with assets totaling more than $50 billion have seen a triple-digit increase in the number of criticized loans.
Flagstar Financial reported a year-on year increase of 338.6% in the number of criticized loan. First Horizon, Valley National Bancorp, and Webster Financial Corp saw increases year-on year in the numbers of criticized loans.
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The post $89 670 000,000,000 of Increasingly risky loans flagged at JPMorgan Chase Wells Fargo Bank of America may change as new information becomes available.
