NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) announces the release of this month’s edition of Bank Talk: The After-Show.
This month in Banks So Boring, Ethan and Van discuss recent asset-quality trends and unsecured consumer loans held by banks, including autos and credit cards. Van challenges Ethan with some of the leading headlines in the press, which warn of an overextended consumer marked by rising debt and who may be vulnerable to a recessionary or higher interest rate environment.
However, Ethan notes that these losses are low relative to the related balances, while auto lending appears to be expanding toward borrowers with pristine credit. In addition, student loans seem to be driving most of the growth in consumer debt and delinquencies. Ethan argues that even if there are higher losses, stronger capital and higher reserves for loan losses seem more than adequate enough to absorb losses in what is ultimately a small proportion of total balance sheet concentration by banks.
To view the report, click here.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.