Provisions to Non-Performing Loans for United States

DDSI07USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

57.70

Year-over-Year Change

-68.50%

Date Range

1/1/1998 - 1/1/2009

Summary

The 'Provisions to Non-Performing Loans' trend measures the ratio of loan loss provisions to non-performing loans for the United States. This is an important indicator of financial system health and bank risk management practices.

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 economic indicator represents the level of provisions or allowances that banks set aside to cover potential losses from non-performing loans. It provides insight into how well the banking sector is managing credit risk and the overall quality of loan portfolios.

Methodology

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

Historical Context

Policymakers and financial analysts closely monitor this metric to assess the resilience of the U.S. banking system.

Key Facts

  • The current value of the Provisions to Non-Performing Loans ratio for the U.S. is XX.X%.
  • This metric reached a high of XX.X% during the 2008-2009 financial crisis.
  • Adequate loan loss provisions help ensure banks can withstand potential credit shocks.

FAQs

Q: What does this economic trend measure?

A: The 'Provisions to Non-Performing Loans' metric measures the ratio of loan loss provisions to non-performing loans for the United States banking system.

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

A: This indicator provides insights into the health and risk management practices of the U.S. banking sector. It is closely monitored by policymakers, regulators, and financial analysts to assess the resilience of the financial system.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank from national banking supervision reports.

Q: How is this trend used in economic policy?

A: Policymakers and regulators use this metric to evaluate the credit risk profile and stability of the U.S. banking system, which informs decisions on monetary policy, financial regulations, and crisis management strategies.

Q: Are there update delays or limitations?

A: The data is published with a delay of several months, and may be subject to revisions as banking sector information is finalized.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for United States (DDSI07USA156NWDB), retrieved from FRED.