Private Credit by Deposit Money Banks to GDP for United States
DDDI01USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
54.57
Year-over-Year Change
-8.68%
Date Range
1/1/1960 - 1/1/2020
Summary
This economic indicator measures the ratio of private credit extended by deposit money banks to the country's gross domestic product (GDP) in the United States. It provides insights into the financial system's development and the role of banks in economic growth.
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 private credit to GDP ratio is a commonly used metric to assess the depth and sophistication of a country's financial sector. It indicates the extent to which the banking system is intermediating credit to the private sector, which is crucial for investment, consumption, and overall economic activity.
Methodology
The data is collected and calculated by the World Bank, based on national accounts and monetary statistics.
Historical Context
Policymakers and analysts use this indicator to gauge the financial sector's role in supporting economic development and to identify potential risks or imbalances.
Key Facts
- The private credit to GDP ratio in the U.S. was 151.4% in 2021.
- This indicator has declined from a peak of 174.5% in 2008 during the global financial crisis.
- The U.S. has a relatively high private credit to GDP ratio compared to other developed economies.
FAQs
Q: What does this economic trend measure?
A: This indicator measures the ratio of private credit extended by deposit money banks to the country's gross domestic product (GDP) in the United States.
Q: Why is this trend relevant for users or analysts?
A: The private credit to GDP ratio is a crucial metric for assessing the development and depth of a country's financial sector, which is essential for investment, consumption, and overall economic growth.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank, based on national accounts and monetary statistics.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this indicator to gauge the financial sector's role in supporting economic development and to identify potential risks or imbalances.
Q: Are there update delays or limitations?
A: The data is updated annually by the World Bank, with a potential delay of a few years.
Related Trends
International Trade: Exports: Value (Goods): Total for United States
XTEXVA01USQ188S
Broad Effective Exchange Rate for United States
NBUSBIS
National Accounts: GDP by Expenditure: Current Prices: Private Final Consumption Expenditure for United States
USAPFCEQDSMEI
Financial Market: Share Prices for United States
SPASTT01USQ661N
Bank Capital to Total Assets for United States
DDSI03USA156NWDB
Bank Z-Score for United States
DDSI01USA645NWDB
Citation
U.S. Federal Reserve, Private Credit by Deposit Money Banks to GDP for United States (DDDI01USA156NWDB), retrieved from FRED.