Global banks set aside $1.15 trillion as LLPs
ISLAMABAD (City News) – In Q3 2020, banks across the globe set aside $1.15 trillion as loan-loss provisions (LLPs), much higher than the amount set aside throughout 2019.
According to McKinsey, in the coming years, LLPs will surpass those of the Great Recession. During Q1 to Q3 2020, the top 100 banks in North America provisioned $130.9 billion for loan losses. In APAC, the top 100 banks set aside $89.4 billion while in Europe, they set aside $72.2 billion.
Based on a report from SP Global, banks across the globe are estimated to suffer credit losses of up to $2.1 trillion in 2020 and 2021. In 2020, the figure is expected to reach $1.3 trillion, more than double the $603 billion posted in 2019. It will drop to $825 billion in 2021