Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 28. Reserves for loan and lease losses, 1990-2005. Data plotted as curves. Three panels. In the top panel, reserves as a percentage of total loans and leases begins in 1990 at about 2.5 percent, rises to about 2.8 percent by 1992, falls to reach about 1.6 percent in 2000, rises to about 1.9 percent by 2002, and falls to about 1.4 percent by 2005. In the middle panel, reserves as a percentage of delinquent loans begins in 1990 at about 50 percent, falls to about 40 percent in 1991, rises to reach about 85 percent by 1995, declines to about 65 percent by 2001, then rises to about 85 percent by 2004 and holds there in 2005. In the bottom panel, reserves as a percentage of net charge-offs begins in 1990 at about 190 percent, rises to about 480 percent by 1994, generally declines to about 190 percent by 2002, rises to about 280 percent by 2004, and declines to about 250 percent in 2005.

Note: The data are annual. For definitions of delinquencies and net charge-offs, refer to the note for figure 24.  Return to article