All articles tagged with #credit risks
U.S. regional banks are under scrutiny as recent loan losses and fraud issues raise concerns about sector-wide credit risks, with investors reacting to signs of potential deterioration in asset quality and broader financial stability.
Germany's major banks are being warned by Bundesbank Vice-President Claudia Buch to increase provisions for non-performing loans as corporate insolvencies and credit risks rise. The German economy, facing downward pressure from a construction collapse, is dealing with a rapid rise in interest rates. Buch emphasized the importance of resilience for banks, urging them to use their current profitability to strengthen capital, liquidity, and IT investments to protect against cyber risks. While German banks enjoyed a strong third quarter, provisioning for non-performing loans did not increase as much as desired, given the uncertain economic environment. Buch expects corporate insolvencies and credit risks to increase, emphasizing the need for banks to enhance their resilience.