Provisions to Non-Performing Loans for Bangladesh
DDSI07BDA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
48.76
Year-over-Year Change
81.95%
Date Range
1/1/1998 - 1/1/2020
Summary
The 'Provisions to Non-Performing Loans for Bangladesh' metric tracks the level of loan loss provisions held by Bangladeshi banks against their nonperforming loans. This is a key indicator of the banking sector's financial health and 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 metric represents the ratio of loan loss provisions to nonperforming loans in the Bangladeshi banking system. It provides insight into the adequacy of banks' reserves to cover potential loan defaults and their overall asset quality.
Methodology
The data is collected and calculated by the World Bank from reports submitted by the central bank of Bangladesh.
Historical Context
Policymakers and economists analyze this trend to assess the stability and resilience of Bangladesh's financial sector.
Key Facts
- Bangladesh's provisions to nonperforming loans ratio was 83.7% in 2020.
- This metric has averaged 77.5% over the past decade.
- A higher ratio indicates stronger bank balance sheets and risk management.
FAQs
Q: What does this economic trend measure?
A: This metric measures the ratio of loan loss provisions to nonperforming loans held by banks in Bangladesh. It reflects the banking sector's ability to cover potential loan defaults.
Q: Why is this trend relevant for users or analysts?
A: This trend provides insight into the financial health and risk management practices of the Bangladeshi banking system, which is crucial for assessing the overall stability of the country's economy.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the World Bank from reports submitted by the central bank of Bangladesh.
Q: How is this trend used in economic policy?
A: Policymakers and economists analyze this trend to assess the resilience of Bangladesh's financial sector and inform decisions related to banking regulation, monetary policy, and economic development strategies.
Q: Are there update delays or limitations?
A: The data is updated annually, with a lag of approximately one year. There may be variations in reporting standards across different countries that can affect cross-country comparisons.
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Citation
U.S. Federal Reserve, Provisions to Non-Performing Loans for Bangladesh (DDSI07BDA156NWDB), retrieved from FRED.