Breaking the bank

North American and European bank losses from bad loans are predicted to reach a record $130 billion and are $10 billion more than they would have been with better monitoring of the loans, according to Oliver, Wyman & Co. But some banks, especially in the US, have already improved.

Losses from bad loans in the banking sector are almost $10 billion more than they need to be, according to financial services strategy consultants Oliver, Wyman & Co (OWC).

This year, OWC forecasts that banks’ losses from bad loans in North America and Europe will reach a record high of $130 billion, an increase of $20 billion on last year’s figures.

The increase is partly due to the worsening economic environment and a raft of high-profile bankruptcies such as Enron, WorldCom, Kmart