Bank Non-Performing Loans to Gross Loans for Lesotho

DDSI02LSA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.20

Year-over-Year Change

133.28%

Date Range

1/1/2004 - 1/1/2020

Summary

This economic indicator tracks the ratio of non-performing loans to total gross loans for banks in Lesotho. It provides insights into the financial health and stability of the country's banking sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The bank non-performing loans to gross loans ratio measures the proportion of a bank's total loan portfolio that is in default or close to default. This metric is closely monitored by economists and policymakers to assess credit risk and the overall soundness of the financial system.

Methodology

The data is collected and reported by the World Bank based on national-level banking sector statistics.

Historical Context

This indicator is used to evaluate the effectiveness of financial regulations and monetary policies in maintaining a stable banking environment.

Key Facts

  • Lesotho's bank non-performing loans to gross loans ratio was 3.7% in 2020.
  • This metric has remained relatively low and stable over the past decade.
  • A high non-performing loans ratio can indicate underlying issues in the banking sector.

FAQs

Q: What does this economic trend measure?

A: This indicator tracks the ratio of non-performing loans to total gross loans for banks operating in Lesotho. It provides insights into the credit quality and financial health of the country's banking sector.

Q: Why is this trend relevant for users or analysts?

A: The bank non-performing loans ratio is a key metric used by economists, policymakers, and financial analysts to assess the stability and soundness of a country's banking system.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank based on national-level banking sector statistics provided by the Central Bank of Lesotho.

Q: How is this trend used in economic policy?

A: Policymakers and central banks monitor this indicator to evaluate the effectiveness of financial regulations and monetary policies in maintaining a stable and healthy banking environment.

Q: Are there update delays or limitations?

A: The World Bank updates this data on an annual basis, with a slight delay in reporting. The availability and quality of the underlying national banking statistics may vary across countries.

Related Trends

Citation

U.S. Federal Reserve, Bank Non-Performing Loans to Gross Loans for Lesotho (DDSI02LSA156NWDB), retrieved from FRED.