Provisions to Non-Performing Loans for Estonia

DDSI07EEA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

32.58

Year-over-Year Change

28.26%

Date Range

1/1/2001 - 1/1/2020

Summary

This trend measures the ratio of bank loan loss provisions to non-performing loans in Estonia, providing insight into the banking sector's financial health and stability.

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 ratio is a key indicator of a banking system's ability to cover potential loan losses. It reflects how well banks are managing credit risk and preparing for potential defaults.

Methodology

The data is collected and calculated by the World Bank from national banking regulators.

Historical Context

This metric is closely monitored by policymakers, analysts, and investors to assess the resilience of Estonia's financial system.

Key Facts

  • Estonia's provisions to non-performing loans ratio was 71.2% in 2020.
  • This metric has remained above 60% since 2015, indicating strong loan loss coverage.
  • The ratio declined from a peak of 85.3% in 2017 as non-performing loans increased.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of bank loan loss provisions to non-performing loans in Estonia, providing insight into the banking sector's financial health and ability to cover potential loan defaults.

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

A: The provisions to non-performing loans ratio is a key indicator of a banking system's resilience and credit risk management. It is closely monitored by policymakers, analysts, and investors to assess the stability of Estonia's financial sector.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from national banking regulators in Estonia.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use this metric to evaluate the health and resilience of Estonia's banking system, informing decisions on financial stability policies and oversight.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so the most recent year may not reflect the current conditions in the banking sector.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Estonia (DDSI07EEA156NWDB), retrieved from FRED.