Covid loan losses exceed 2019 CCAR projections

CECL accounting likely responsible for discrepancy

Top US banks’ estimated loan losses for Q1 2020 overshot their projections for the 2019 round of the Comprehensive Capital Analysis and Review (CCAR) stress test, Risk Quantum analysis shows.

JP Morgan announced provisions for credit losses (PCLs) of $8.3 billion for Q1 2020, reflecting the deterioration of its loan book due to the coronavirus crisis. Under the most recent Federal Reserve stress tests, the bank estimated it would take $38.6 billion of loan losses over the nine quarter horizon

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here