High-earning banks set aside more Covid provisions – BIS
Provisions across 70 banks in H1 2020 were almost quadruple those taken in H2 2019
Loan-loss provisions taken over 2020 were “significantly higher” among banks with lusty incomes, and lower among less profitable firms, research by the Bank for International Settlements (BIS) shows.
Earnings, not capital, appeared to drive provisions across a sample of 70 large, internationally-active banks that used expected credit loss (ECL) accounting. In addition, the overall amount and
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