The overall level of troubled borrowing in the US economy increased modestly in the third quarter, although the latest figures do not point to a significant deterioration in credit quality, according to a report released by the Federal Reserve Bank of New York on Tuesday, Reuters reported.
Loans showing some form of distress accounted for 5% of total borrowing during the third quarter, up 0.3 percentage point from the previous quarter, the New York Fed said in its latest Quarterly Report on Household Debt and Credit.
Despite the increase, the share of troubled loans remained broadly in line with levels recorded before the COVID-19 pandemic and significantly below those seen during the global financial crisis nearly two decades ago.
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