Bank Non-Performing Loans to Gross Loans for Madagascar

Q: What does this economic trend measure?

A: This trend measures the percentage of bank loans in Madagascar that are classified as non-performing, meaning the borrower has fallen behind on payments for at least 90 days.

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

A: The level of non-performing loans is a key indicator of the health and stability of Madagascar's banking sector. It signals the extent of credit risk in the economy and can inform policymakers and investors about potential vulnerabilities.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on reports from national banking authorities in Madagascar.

Q: How is this trend used in economic policy?

A: Policymakers and regulators monitor this indicator to assess the soundness of the Malagasy banking system and identify areas that may require increased supervision or policy intervention to maintain financial stability.

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 situation. Additionally, cross-country comparisons may be limited by differences in national reporting standards.