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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

JP Morgan puts more money aside for defaults amid cost of living crisis

JP Morgan
JP Morgan is the first big US lender to increase the money put aside for defaults. Photograph: Timothy A Clary/AFP/Getty Images

One of the world’s largest banks, JP Morgan, is preparing for a potential surge in defaults by borrowers as households face pressure from high inflation and ever-climbing interest rates.

The Wall Street bank put aside $1.7bn (£1.3bn) for credit losses between April and June, according to its latest financial report, marking a 54% jump from a year earlier, when provisions totalled $1.1bn.

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