Banks forcast delinquent loans rise 23.8%

Lenders are boosting reserves and loan loss provisions at a record pace .The Federal Deposit Insurance Corp.’s Quarterly Banking Survey reveals that the 8,560 institutions it insures boosted their reserves by 7%during the third quarter, to $87 billion. It was the largest quarterly increase in reserves in 18 years, but failed to keep pace with a “sharp rise” in delinquent loans, the report said.