The write-off of non-performing consumer loans of the four largest banks in the United States has surged, but executives still believe that the "rift" has not appeared.

FAP, April 19 (AP)-- Bank of America has become the latest large bank to draw more reserves as more American consumers fail to keep up with the pace of loan repayment, even though executives have played down fears of an impending crisis. In the first three months of 2023, four major US banks, including Goldman Sachs, Wells Fargo and JPMorgan Chase, wrote off $3.4 billion in non-performing consumer loans, up 73 per cent from a year earlier. Together with additional reserves, the provisions of the four major institutions have reached their highest level since the beginning of the epidemic. Over the years, banks have benefited from the strong financial strength of US consumers as credit losses have fallen to historic lows. Now, as high inflation erodes savings, Americans are once again defaulting on their loans. But so far, banking executives have insisted that the recent increase in provisions is nothing more than a return to normal losses after the epidemic-era government stimulus package artificially depressed consumer defaults. "We haven't seen any cracks in the portfolio," Alastair Borthwick, BofA's chief financial officer, said on a conference call with reporters on Tuesday. "consumers are in good shape."