A warning sign from the Big Banks of a possible recession
The Decibel
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The Rise of Provisions for Credit Losses
Stephanie Coontz: provisions for credit losses or PCLs are increasing at a faster rate than analysts had expected. She says when the pandemic roiled markets, banks set aside more money because they were expecting massive job losses and loans to default. When those didn't end up happening, it helped boost bank profits last year.coontz: Banks now have less money to spend on bad loans so that's what is eating into their profits.
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