With banks set to report Q3 earnings, regulators will have an eye on how much of a boost profits...

|By:, SA News Editor

With banks set to report Q3 earnings, regulators will have an eye on how much of a boost profits get by slashing reserves for bad loans. Perfectly legal, the action nevertheless gives an unsustainable boost to profit - it's accounted for 23% of the bottom line for TBTFs over the last year - making banks look healthier just at the time they've thinned cushions against the next downturn.