Earnings Alleviate Credit Risk Concerns; Equity Markets Won't Trigger Emergency Cut

Credit trends are normalizing. Of the 94 banks that reported earnings through July 26, 64 recorded lower-than-expected provisions for credit losses, and 67 reported net charge offs below estimates, according to S&P Global Market Intelligence. Overall, earnings have been solid, though commercial real estate continues to pose risks. Review the breakdowns of provisions and NCOs for banks above $50 billion, between $20 billion and $50 billion, and between $10 billion to $20 billion. 

Another S&P post discusses why some Fed observers believe that concerns about the stock market won't trigger an emergency rate cut from the Fed.

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