Provisions to Non-Performing Loans for Switzerland

DDSI07CHA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

40.33

Year-over-Year Change

-48.36%

Date Range

1/1/2002 - 1/1/2020

Summary

This economic trend measures the provisions made by Swiss banks to cover non-performing loans. It is an important indicator of financial system stability and credit risk.

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 Provisions to Non-Performing Loans for Switzerland represents the ratio of loan loss provisions to non-performing loans, providing insight into the adequacy of banks' reserves to cover potential defaults.

Methodology

The data is collected and calculated by the World Bank from financial reporting by Swiss banks.

Historical Context

This metric is closely monitored by policymakers and analysts to assess the resilience of the Swiss banking sector.

Key Facts

  • Switzerland has one of the most stable and well-capitalized banking systems globally.
  • Loan loss provisions averaged around 50% of non-performing loans in Switzerland over the past decade.
  • The Provisions to Non-Performing Loans ratio is an important early warning indicator of potential credit issues.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of loan loss provisions to non-performing loans for the Swiss banking sector, providing insight into the adequacy of banks' reserves to cover potential defaults.

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

A: The Provisions to Non-Performing Loans ratio is an important indicator of financial system stability and credit risk, closely monitored by policymakers and analysts to assess the resilience of the Swiss banking sector.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from financial reporting by Swiss banks.

Q: How is this trend used in economic policy?

A: This metric is used by policymakers and analysts to assess the health and resilience of the Swiss banking system, informing macroprudential policies and financial stability oversight.

Q: Are there update delays or limitations?

A: The data is published annually with a delay, so it may not reflect the most recent conditions in the Swiss banking sector.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Switzerland (DDSI07CHA156NWDB), retrieved from FRED.