The Impact of the COVID-19 Recession on Consumer Credit
The COVID-19 pandemic is dramatically impacting consumer credit portfolios.
The COVID-19 pandemic is dramatically impacting consumer credit portfolios. Using U.S. household performance and balance data, we will examine the impact given recent epidemiological and economic data. We also consider the variability introduced by different types of lender assistance.
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Cards and CECL estimates
Recent CECL impact disclosures point directly to credit cards as the largest driver of the allowance. We can confirm those recent disclosures by looking at the consumer default volumes chart in Figure 1,which clearly point to the credit card segment as being one of the largest contributors of loss today.
