‘US banks are in good shape to deal with the challenges of Covid-19.’ Discuss
Major U.S. banks have signaled that the worst period of the economic crisis caused by the coronavirus pandemic is yet to come, reserving tens of billions of dollars to cover possible loan losses. Many U.S. banks and credit card issuers extend grace periods and waive penalties on loans such as mortgages, auto loans, and credit cards.
Currently, the largest banks have started to publish reports: in general, the financial sector of the S&P 500 is expected to increase the net profit of companies by 75.6%.
In general, we should expect a more confident management outlook for the future and a further reduction in loan loss provisions from the bank reports. That is, the US banking system is currently recovering from the losses caused by the Covid-19.