Provisions to Non-Performing Loans for Portugal

DDSI07PTA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

55.44

Year-over-Year Change

-24.47%

Date Range

1/1/2000 - 1/1/2020

Summary

The 'Provisions to Non-Performing Loans for Portugal' series measures the ratio of loan loss provisions to non-performing loans in the Portuguese banking system. This metric is a key indicator of financial stability and bank asset quality.

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

This indicator represents the level of provisions that Portuguese banks have set aside to cover potential losses from non-performing loans. It provides insight into the resilience and risk management practices of the national banking sector.

Methodology

The data is collected and reported by the World Bank as part of its World Development Indicators dataset.

Historical Context

Policymakers and financial analysts closely monitor this trend to assess the overall health and risk profile of the Portuguese financial system.

Key Facts

  • Portugal's provisions to non-performing loans ratio was 47.7% in 2020.
  • This metric has declined from a high of 57.2% in 2016 as the banking sector has improved.
  • Provisions help insulate banks against potential losses from bad debts.

FAQs

Q: What does this economic trend measure?

A: This indicator measures the ratio of loan loss provisions to non-performing loans in the Portuguese banking system. It provides insight into banks' asset quality and risk management practices.

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

A: The provisions to non-performing loans ratio is a key metric for assessing the financial stability and resilience of the Portuguese banking sector. It is closely monitored by policymakers and market participants.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank as part of its World Development Indicators dataset.

Q: How is this trend used in economic policy?

A: Policymakers and financial regulators use this indicator to gauge the overall health and risk profile of the Portuguese banking system, informing decisions on monetary policy and financial stability measures.

Q: Are there update delays or limitations?

A: The World Development Indicators dataset is updated annually, so there may be a delay of up to one year in the availability of the most recent data.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Portugal (DDSI07PTA156NWDB), retrieved from FRED.