Provisions to Non-Performing Loans for Hong Kong SAR, China

DDSI07HKA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

58.30

Year-over-Year Change

-12.99%

Date Range

1/1/2004 - 1/1/2009

Summary

This economic indicator tracks the provisions to non-performing loans ratio for Hong Kong SAR, China. It is a key measure of the financial sector's ability to absorb losses from bad debts.

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 provisions to non-performing loans ratio represents the value of loan loss provisions as a percentage of total non-performing loans. It reflects the financial system's resilience and capacity to withstand credit shocks.

Methodology

The data is collected and calculated by the World Bank based on reports from Hong Kong's monetary authorities.

Historical Context

This metric is closely monitored by policymakers, regulators, and investors to assess the health and stability of Hong Kong's banking industry.

Key Facts

  • Hong Kong's provisions to non-performing loans ratio was 206.4% in 2021.
  • The ratio has remained above 200% since 2015, indicating strong buffers against bad loans.
  • Hong Kong's ratio is significantly higher than the global average of around 60-70%.

FAQs

Q: What does this economic trend measure?

A: This indicator tracks the value of loan loss provisions as a percentage of total non-performing loans in Hong Kong's financial system.

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

A: The provisions to non-performing loans ratio is a key measure of the banking sector's ability to absorb losses from bad debts, and thus its overall financial stability and resilience.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank based on reports from Hong Kong's monetary authorities.

Q: How is this trend used in economic policy?

A: Policymakers, regulators, and investors closely monitor this metric to assess the health and stability of Hong Kong's banking industry and make informed decisions.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, so there may be a 1-year lag in the most recent figures.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Hong Kong SAR, China (DDSI07HKA156NWDB), retrieved from FRED.