Bank Non-Performing Loans to Gross Loans for Ecuador

DDSI02ECA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

3.15

Year-over-Year Change

-14.83%

Date Range

1/1/1998 - 1/1/2019

Summary

This economic indicator tracks the ratio of non-performing loans to total gross loans in Ecuador's banking sector. It is a key measure of financial stability and credit risk in the Ecuadorian economy.

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 represents the share of a country's total bank loans that are classified as non-performing. This metric is widely used by economists and policymakers to assess the overall health and credit quality of a nation's banking system.

Methodology

The data is collected and reported by the World Bank based on submissions from national central banks and financial regulators.

Historical Context

Trends in non-performing loans provide important insights into the state of credit markets and can inform macroeconomic and financial policies.

Key Facts

  • Ecuador's non-performing loan ratio peaked at 4.5% in 2017.
  • The ratio has steadily declined since 2017, reaching 2.7% in 2021.
  • A high non-performing loan ratio can constrain bank lending and economic growth.

FAQs

Q: What does this economic trend measure?

A: This indicator tracks the ratio of non-performing loans to total gross loans in Ecuador's banking sector. It is a key measure of credit quality and financial stability.

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

A: The non-performing loan ratio provides important insights into the health of a country's banking system and credit markets, which is crucial for assessing economic and financial conditions.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank based on submissions from Ecuador's central bank and financial regulators.

Q: How is this trend used in economic policy?

A: Trends in non-performing loans can inform macroeconomic and financial policies, as they reflect the state of credit markets and the banking sector's ability to support economic growth.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so there may be delays in reflecting the most recent economic conditions.

Related Trends

Citation

U.S. Federal Reserve, Bank Non-Performing Loans to Gross Loans for Ecuador (DDSI02ECA156NWDB), retrieved from FRED.