Why problems loans could blindside investors in big Banks ?

please click on the link below to read an article published in the Globe and Mail quoting Anthony Scilipoti on why problem loans could blindside investors in Canada’s big banks (The same analogy would apply to other countries also). 

“The problem with provisions is they’re backward-looking,” says Anthony Scilipoti, President ofVeritas Investment Research. […] Veritas calculates that provisions, as a percentage of loans, are now at a post-financial-crisis low point, and at a level about half their historical norms. […] “Earnings have benefited thus far because of the reduced provision, because you take less charges to income, and it makes income higher,” Mr. Scilipoti says. “As things turn, and some loans may become impaired, provisions go up, and income goes down.”

Why problem loans could blindside investors in Canada’s big Banks

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The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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