Are banks' loan-loss reserves as formidable as they look? No, says a veteran analyst who is worried about growing consumer debt difficulties.

Under current practice, banks do not list problem credit card or other consumer loans as nonperforming. If they were to do so, their reserves would appear less plentiful, said George M. Salem of Gerard Klauer Mattison & Co., New York.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.