Since the start of 2020, bank profits have been on a volatile swing reminiscent of the financial crisis. The rule is intended to create a clearer picture of bank risk by forcing banks to acknowledge potential problems earlier. The accounting change has affected that relationship, too. Citigroup bank analystKeith Horowitzsaid investors making long-term bets on banks should look at what the provisions say about bank forecasts. The bank’s profit fell 42%.

Source: Wall Street Journal June 11, 2022 04:47 UTC