Loan appetite pushes credit risk higher at Goldman Sachs
Standardised credit RWAs for loans up 19% since end-2017
Goldman Sachs’s plunge into consumer lending is pumping up its credit risk capital requirements under the standardised approach, Risk Quantum analysis shows.
As of end-September, the bank had $100.1 billion loans outstanding, up 24% from $80.8 billion at end-2017. Allowances for loan losses totalled $1.3 billion, up from $803 million in Q4 2017.
Consumer loans, originated by the bank’s Marcus platform, made up $5.5 billion of total loans, up from $1.9 billion at end-2017.
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