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Wall Street analysts seem agreeable; nobody asked about reserves or loan quality after the earnings report.
The facts in that case relied on Clayton reports of loan quality commissioned by Morgan Stanley.
Loan quality is going up, nonperforming assets are going down and they are still adding to their reserves.
Thanks in part to concerns about loan quality, the bank's stock has fallen as the economy has weakened.
As recently as November, senior Chinese bankers spoke confidently of their ability to avoid loan quality problems.
Despite the deterioration in loan quality, ShoreBank's financial reports indicate the bank steadfastly sought to avoid loan foreclosures.
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The lenders' new attitude can be traced, in part, to new loan quality-control measures that went into effect earlier this year.
In reality, only 40percentt of the loans Quality Assurance reviewed properly received an "agree" designation, with 55percentt receiving the misleading "agree contingent" label.
"You cannot fund a loan without quality," she said.
Wall Street was there to pick up their subprime loans, package them with other loans (some quality, some not), and sell them to investors.
The dollar-value of banks' auto loans that have become delinquent is relatively stable compared with recent years, even though auto-loan volume has increased, indicating a slight improvement in the banks' auto-loan credit quality, Noe said.
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