Banks’ Reserve Cuts Drawing Close Scrutiny, OCC’s Curry Says
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U.S. regulators may take action against banks that boost risk by excessively reducing loan-loss reserves, Comptroller of the Currency Thomas Curry said in a Dallas speech.
“Too many institutions are continuing to reduce provisions solely to boost earnings,” Curry said in remarks prepared for a Risk Management Association conference today. “If provisioning continues at current levels and charge-offs remain constant, the allowance as a share of non-current loans could return to historical lows in just a few years.”