I will look into the credit allowances breakdown and accounting in more detail and will post the results here as I have something of substance to post.
And Yes, completely, I am with you that credit provisions can fail very badly. I am just saying is better than 2008 because even though noncurrent loans are still low, they are taking the steps to better protect themselves, which they failed to do at all at the start of 2008, with a coverage ratio below 1. But if they don’t adjust provisions later on as risks start to be more apparent, I also don’t think it will be enough this time either in a wave of defaults.
As CRE is not the only issue, corporate loans maturities are also approaching, and auto loans and other consumer credit are already starting to get weak too. This without adding a recession and unemployment increasing.