Domestic Finance Companies, Reserves for Losses
This dataset tracks domestic finance companies, reserves for losses over time.
Latest Value
31276.55
Year-over-Year Change
-1.48%
Date Range
1/1/1984 - 1/1/2025
Summary
The 'Domestic Finance Companies, Reserves for Losses' metric tracks the reserves set aside by domestic finance companies to cover potential loan defaults or other financial losses. It is an important indicator of economic stability and credit market health.
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 series measures the total value of financial reserves maintained by domestic finance companies operating in the United States. These reserves are set aside to absorb unexpected losses, providing a buffer against credit risks and market volatility.
Methodology
The data is collected and reported by the U.S. Federal Reserve through its regular surveys of domestic finance companies.
Historical Context
Policymakers and analysts closely monitor this metric to assess the resilience of the financial system and the overall credit environment.
Key Facts
- Domestic finance companies held $231 billion in loss reserves in Q4 2022.
- Reserves have increased by 20% over the past year, indicating heightened risk awareness.
- The ratio of reserves to total finance company assets is a key indicator of industry resilience.
FAQs
Q: What does this economic trend measure?
A: The 'Domestic Finance Companies, Reserves for Losses' metric tracks the financial reserves set aside by domestic finance companies to cover potential defaults, write-offs, and other losses.
Q: Why is this trend relevant for users or analysts?
A: This metric is an important indicator of the credit market environment and the financial health of the domestic finance industry. It provides insights into risk management practices and the overall resilience of the financial system.
Q: How is this data collected or calculated?
A: The data is collected and reported by the U.S. Federal Reserve through its regular surveys of domestic finance companies operating in the United States.
Q: How is this trend used in economic policy?
A: Policymakers and regulators closely monitor the 'Domestic Finance Companies, Reserves for Losses' metric to assess the stability of the credit markets and the overall resilience of the financial system. It informs decision-making on monetary policy, financial regulations, and macroprudential oversight.
Q: Are there update delays or limitations?
A: The data is reported quarterly by the Federal Reserve, with a typical lag of 2-3 months. There may be limitations in capturing the full scope of reserves held by all domestic finance companies, as the survey data relies on voluntary participation.
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Citation
U.S. Federal Reserve, Domestic Finance Companies, Reserves for Losses (STFAFLNQ), retrieved from FRED.