In 2023, the Bank Nonperforming Loans to Total Gross Loans in the US stood at 0.62 units. The data reveals a significant declining trend from 2.45 units in 2013, suggesting a consistent improvement in the quality of bank assets over the past decade. From 2022 to 2023, the Nonperforming Loans ratio decreased by approximately 11.1%. Over the last two years, the ratio declined by 14.8%, and the 5-year CAGR indicated an average annual reduction of 9.78%. The period from 2024 to 2028 is forecasted to continue this downward trend, amounting to a total decrease of 40.24% by 2028.
Future trends to watch for include potential changes in economic conditions, regulations, and banking practices that could influence the Nonperforming Loans ratio. Considering this favorable forecast, attention should be paid to economic indicators, risk management practices, and regulatory changes that may impact the banking sector.
