Criticized Loans Increase, Banks Raise Capital for M&A

Amid ongoing concerns about credit quality, large banks' criticized loans (i.e., loans that are performing but show signs of risk) reached a 14-year high in the first quarter, S&P Global Market Intelligence wrote. Additionally, all but three of the top-20 banks with the most criticized loans posted quarter-over-quarter increases, and each of the top 20 posted year-over-year increases. S&P noted that while the trend suggests stress in the system, nonperforming assets have not increased alongside criticized loans.

Another S&P article discusses how banks are proactively raising capital to improve their chances of winning regulatory approvals for M&A deals.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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