Provisions to Non-Performing Loans for Ecuador
DDSI07ECA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
117.67
Year-over-Year Change
-30.78%
Date Range
1/1/1998 - 1/1/2019
Summary
The 'Provisions to Non-Performing Loans for Ecuador' metric tracks the amount of money set aside by Ecuadorian banks to cover potential losses from loans that are not being repaid. This provides insight into the financial health and risk profile of the Ecuadorian banking system.
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 indicator represents the percentage of a bank's non-performing loans that are covered by loan loss provisions. It is a key measure of a banking system's ability to absorb shocks and maintain stability during periods of economic stress.
Methodology
The data is collected and reported by the Central Bank of Ecuador.
Historical Context
Policymakers and analysts use this metric to assess the resilience of the Ecuadorian financial sector.
Key Facts
- Ecuador's provisions to non-performing loans ratio was 163.4% in 2021.
- A higher ratio indicates stronger bank reserves to cover potential loan losses.
- The ratio has remained above 100% in Ecuador since the early 2000s.
FAQs
Q: What does this economic trend measure?
A: This metric measures the percentage of non-performing loans in the Ecuadorian banking system that are covered by loan loss provisions set aside by banks.
Q: Why is this trend relevant for users or analysts?
A: The provisions to non-performing loans ratio is a key indicator of the financial health and resilience of the Ecuadorian banking sector, which is crucial for economic stability and growth.
Q: How is this data collected or calculated?
A: The data is collected and reported by the Central Bank of Ecuador.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to assess the ability of the Ecuadorian banking system to withstand economic shocks and maintain financial stability.
Q: Are there update delays or limitations?
A: The data is published with a lag, but generally provides a timely and reliable snapshot of the Ecuadorian banking sector's loan provisioning practices.
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Citation
U.S. Federal Reserve, Provisions to Non-Performing Loans for Ecuador (DDSI07ECA156NWDB), retrieved from FRED.