{"id":539737,"date":"2010-04-22T07:26:00","date_gmt":"2010-04-22T11:26:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:426423"},"modified":"2010-04-22T07:26:00","modified_gmt":"2010-04-22T11:26:00","slug":"imf-slashes-bank-loan-loss-and-provisions-estimates","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/539737","title":{"rendered":"IMF slashes bank loan loss and provisions estimates"},"content":{"rendered":"<p>The IMF has <a href=\"http:\/\/www.imf.org\/external\/pubs\/ft\/survey\/so\/2010\/RES042010A.htm\" >revised down<\/a> its estimates for the global banking sector\u2019s loan losses and provisions from the credit crisis. A US$533-billion reduction to US$2.276-trillion represents a significant revision from the IMF\u2019s previous estimate published just six months ago.<\/p>\n<p>The IMF data also showed that U.S. and U.K. banks are the most advanced in the cycle, with close to 80% of the estimated write-downs already realized, notes National Bank chief economist and strategist, St\u00e9fane Marion. That compares to 62% in the Euro area.<\/p>\n<p>\u201cThe improving economic cycle has helped bolster capital to the point where the IMF expects the remaining writedowns or provisions to be mostly covered by earnings for the aggregate banking system,\u201d Mr. Marion told clients.<\/p>\n<p>However, while the asset side of bank balance sheets is improving, the IMF noted that the liability side may come under increasing pressure in coming months.<\/p>\n<p>Increased earnings and private investment have allowed banks to make substantial improvements to their capital positions. At the same time an improved asset picture leads to less pressure in terms of boosting capital buffers to absorb potential loan and security losses.<\/p>\n<p>However, the IMF cautioned that authorities are likely to strengthen bank capital and liquidity requirements to increase the safety of the financial system. It also noted that banks need to refinance nearly US$5-trillion in debt that will mature in the next three years.<\/p>\n<p>\u201cThis will coincide with heavy government issuance and follow the removal of central bank emergency measures,\u201d the report said.<\/p>\n<p>The IMF warned that the overall picture masks problem areas, including some regional banks with heavy real estate exposure in the United States, heavy exposure to real estate development loans in the Spanish banking, and in some regional banks in Germany. <\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=426423\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IMF has revised down its estimates for the global banking sector\u2019s loan losses and provisions from the credit crisis. A US$533-billion reduction to US$2.276-trillion represents a significant revision from the IMF\u2019s previous estimate published just six months ago. The IMF data also showed that U.S. and U.K. banks are the most advanced in the [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-539737","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/539737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=539737"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/539737\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=539737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=539737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=539737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}