From Investing.com: 2024-06-05 09:29:00

Credit card and auto loans are posing a risk to bank balance sheets, with JP Morgan, Citibank, and Capital One among the largest holders. Delinquency ratios for these loans are on the rise, especially among low-income borrowers, mirroring pre-GFC trends. Transition rates into delinquency are increasing, with 8.9% of credit card balances and 7.9% of auto loans delinquent. The NY Fed warns of worsening asset quality metrics and a surge in maxed-out borrowers. Banks are advised to conduct due diligence on where they keep their funds, as the risk of a banking crisis looms, and the markets show worrying trends.



Read more at Investing.com: The NY Fed Is Getting Concerned About Banks and No One Is Paying Attention