Federal Reserve Bulletin, Volume 95, 2009   Current Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2008

Figure 36. Provisions for loan and lease losses as a proportion of total assets, 1985-2008.

Data are plotted as a curve. The series begins in 1985 at around 0.6 percent, rises to peak at about 1.4 percent by 1987, falls to about 0.6 percent in 1988, rises again to about 1 percent in 1989, and remains at about that level until 1991. The ratio falls steeply to about 0.4 percent in 1994, trends up to about 0.7 percent by 2001, holds about steady in 2002, declines over the next two years to about 0.4 percent in 2004, holds at that level in 2005, then begins to rise steeply, to 0.5 percent at year-end 2007 and nearly 1.5 percent at year-end 2008.

NOTE: The data are annual.

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