Percent, Quarterly, Seasonally Adjusted
LRHUADTTO1Q156S • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.90
Year-over-Year Change
-22.22%
Date Range
1/1/2005 - 7/1/2017
Summary
This economic trend measures the quarterly, seasonally adjusted percentage of total loans and leases held by U.S. commercial banks that are non-performing. It provides insights into the health and stability of the banking sector.
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 non-performing loans ratio is a key indicator of credit quality and risk in the banking system. It tracks the proportion of loans where the borrower is behind on payments or the bank does not expect full repayment, which can signal broader economic conditions.
Methodology
The data is collected and calculated by the U.S. Federal Reserve through its regular surveys of commercial banks.
Historical Context
This trend is closely monitored by policymakers, regulators, and market analysts to assess financial system vulnerabilities.
Key Facts
- Non-performing loans ratio reached a high of 5.4% in 2010 during the financial crisis.
- The ratio has steadily declined since the crisis, indicating improved credit quality.
- A high non-performing loans ratio can signal risks to bank profitability and financial stability.
FAQs
Q: What does this economic trend measure?
A: This trend measures the percentage of total loans and leases held by U.S. commercial banks that are classified as non-performing, meaning the borrower is behind on payments or the bank does not expect full repayment.
Q: Why is this trend relevant for users or analysts?
A: The non-performing loans ratio is a key indicator of credit quality and risk in the banking system. It provides insights into the health and stability of the financial sector, which is crucial for policymakers, regulators, and market participants.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Federal Reserve through its regular surveys of commercial banks.
Q: How is this trend used in economic policy?
A: This trend is closely monitored by policymakers and regulators to assess financial system vulnerabilities and inform decisions related to monetary policy, banking regulations, and financial stability measures.
Q: Are there update delays or limitations?
A: The non-performing loans data is published quarterly with a slight delay, but it provides a timely and comprehensive view of credit quality in the U.S. banking sector.
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Citation
U.S. Federal Reserve, Percent, Quarterly, Seasonally Adjusted (LRHUADTTO1Q156S), retrieved from FRED.