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The Institutional Risk Analyst

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Writer's pictureR. Christopher Whalen

The IRA Bank Book Q1 2022 | Credit Risk Returns

Updated: Mar 10, 2022

March 7, 2022 | In this Premium Service issue of The IRA Bank Book for Q1 2022, we review the trends in the US banking sector as we head to the end of the first quarter of 2022. This report will be available to all of our readers through March 10th. The good news is that the skew in bank financial results caused by COVID and the response by the Federal Open Market Committee is nearly at an end. The bad news is that Russia's attack on Ukraine is creating new credit default events all over the world even as it pushes global prices higher. As the chart below illustrates, the contribution to bank earnings from negative loan loss provisions has just about run its course. In many ways, Q1 2022 is an inflection point for markets, inflation and risk.

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