Credit card losses will most likely increase in volume in the United States and all over the industry especially to JPMorgan Chase & Co. as mentioned by Gordon Smith, the head of the bank’s consumer businesses during the conference held on Tuesday. U.S. banks are being objective in their policy decision on whether to tighten credit policies and it is not far that most lenders within the financial sector are inclined to impose a stricter credit card lending standards instead of attenuating it. JPMorgan earnings are seen to have increased in sales volume but declining credit trend that is still similar to other lending institutions. It is forecasted as shown in the Fitch ratings report that this will persist in the next few quarters because of the rising trend in loan growth pushed by lower credit rates. However, Smith said that there is no need to get distressed over this matter as this is already expected after some time of low loss rates in the past and is now approaching the end of the cycle.
