Posted 12/2/2023, 12:25:15 AM
Banks Brace for Economic Slowdown by Boosting Loan Loss Reserves, Cutting Jobs
- Banks setting aside more money for potential loan defaults and cutting jobs to control costs as they brace for weak 2024 economy
- Higher interest rates slowing growth, lifting unemployment, expected to lead to more loan defaults over time
- BMO and CIBC only big banks to reduce provisions this quarter; questions over BMO's view on credit quality
- Banks facing rising expenses, launching restructuring to cut thousands of jobs and real estate footprint
- Regulator OSFI increased capital requirements banks must hold, may rise further to over 12%