By Lananh Nguyen
NEW YORK (Reuters) -Credit among consumers and businesses remains strong, despite recent concerns about loan losses that have weighed on bank stocks, Wells Fargo CEO Charlie Scharf said on Tuesday.
“We don’t see cracks…in the banking system,” Scharf told the Economic Club of New York. Scharf called credit “exceptionally good,” and said he doesn’t expect things to get worse yet.
Some regional U.S. banks flagged bad loan and fraud issues in recent weeks, worrying investors and prompting them to scrutinize lenders’ earnings reports for signs of wider strain across the sector.
JPMorgan Chase CEO Jamie Dimon’s recent comment about the potential for more frauds has amplified anxiety about weaknesses in the industry.
“When you see one cockroach, there are probably more, and so everyone should be forewarned of this one,” Dimon said last week.
Scharf also expressed confidence in private credit markets, which have also been the subject of investor concerns. Asked about the surge of lending in private credit markets outside of traditional banks, Scharf said: “I don’t think it’s a major systemic issue.”
(Reporting by Lananh Nguyen; additional reporting by Nupur Anand; Editing by Leslie Adler)
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