Large Bank Supervision Forum eBook

Emerging Credit Risks

ƒ Consumer FOMO continues to fuel confidence with financial leverage ƒ Geopolitical instability ƒ Fed easing / Soft landing? ƒ Contagion risk / Counterparty risk ƒ Strong housing market / Lack of supply ƒ Corporate layoffs continue ƒ Continued growth in non-bank competition Macro Trends

Areas of Concern

ƒ Elevated rates and impact on DTI / Debt Service Coverage ƒ Student loan repayments ƒ Record credit card debt ƒ Falling auto prices ƒ CRE Office / Multifamily / Senior Housing ƒ Leveraged finance market ƒ Non-reported debt (BNPL, etc.)

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