What's Behind The Rise In Consumer Nonperforming Loans?

There’s a worrying trend developing in the consumer loan market. In the first quarter of 2016, aggregate bank non-performing loans increased for the first time in the post-crisis cycle. Most of these losses were attributed to the energy sector, but there was also an increase in NPL volumes in select consumer loan segments. This trend was confirmed by NPL guidance from a large consumer finance firm last week according to UBS, which this week published a report on the US consumer loan sector.  The Game Of Pay-Day Loans In the report, UBS asks what is driving the increase in consumer NPL…