The two largest banks in the United States are anticipating a combined loss of $4.5 billion due to customers who are unable to pay their bills. JPMorgan Chase reported that its net charge-offs, which are debts that the bank does not expect to recover, reached $2 billion in the first quarter of this year. This is nearly double the amount of unrecoverable debt compared to the same period last year. Similarly, Bank of America experienced $1.5 billion in net charge-offs, a significant increase from $807 million in the previous year. The losses for Bank of America primarily stem from credit card debt that is unlikely to be repaid. According to Chief Financial Officer Alastair Borthwick, the bank is witnessing financial difficulties among borrowers with below-prime credit scores, whose household spending is affected by higher interest rates and inflation. The rise in net charge-offs is also observed at Citigroup and Wells Fargo, as a recent survey conducted by the Federal Reserve reveals that most banks are tightening lending standards for various types of loans. Despite these losses, both JPMorgan Chase and Bank of America assert that their balance sheets remain strong. In fact, JPMorgan Chase earned a profit of $49.6 billion last year, while Bank of America earned $24.9 billion.