Provisions to Non-Performing Loans for Czech Republic

DDSI07CZA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

50.42

Year-over-Year Change

-12.15%

Date Range

1/1/1998 - 1/1/2020

Summary

The Provisions to Non-Performing Loans for the Czech Republic measures the ratio of loan loss provisions to non-performing loans, providing insight into the soundness and stability of the country's 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

This economic indicator represents the level of loan loss provisions set aside by banks in the Czech Republic to cover potential defaults or non-payments on their loan portfolios. It is a key metric used by financial analysts and policymakers to assess the overall health and risk profile of the national banking system.

Methodology

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

Historical Context

This trend is closely monitored by the Czech National Bank and other regulators to help inform macroprudential policies and ensure financial system stability.

Key Facts

  • Czech Republic's provisions to non-performing loans ratio was 59.4% in 2021.
  • The ratio has remained above 50% since 2015, indicating a relatively stable banking system.
  • Provisions help banks absorb potential losses from defaulted loans.

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 in the Czech Republic's banking sector.

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

A: This indicator provides insight into the soundness and stability of the Czech banking system, as higher provisions signal stronger risk management practices and a more resilient financial sector.

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: The Czech National Bank and other regulators closely monitor this metric to help inform macroprudential policies and ensure the overall stability of the country's financial system.

Q: Are there update delays or limitations?

A: The World Bank data is typically published with a 1-2 year lag, so the most recent figures may not reflect the current banking environment.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Czech Republic (DDSI07CZA156NWDB), retrieved from FRED.