Charge-Off Rate on Business Loans, All Commercial Banks
CORBLACBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.55
Year-over-Year Change
358.33%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Business Loans tracks the percentage of commercial loans that banks have determined are unlikely to be repaid. This metric provides critical insight into the financial health of businesses and the overall credit risk in the commercial banking sector.
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 economic indicator measures the proportion of business loans that commercial banks have written off as uncollectible, reflecting the current state of business financial distress and credit market conditions. Economists use this trend to assess economic stress, lending standards, and potential recessionary signals.
Methodology
The rate is calculated by dividing the total value of charged-off business loans by the total outstanding business loan portfolio, typically reported quarterly by commercial banks.
Historical Context
Policymakers and financial regulators use this data to monitor banking sector stability, assess credit market risks, and inform monetary and regulatory decisions.
Key Facts
- Charge-off rates typically increase during economic downturns
- Higher rates indicate increased financial stress for businesses
- The metric is a leading indicator of potential economic challenges
FAQs
Q: What does a charge-off rate indicate?
A: A charge-off rate reflects the percentage of loans banks consider unlikely to be repaid, signaling potential financial distress in the business sector.
Q: How do charge-off rates impact lending?
A: High charge-off rates can lead banks to tighten lending standards, making it more difficult for businesses to access credit.
Q: How is the CORBLACBS calculated?
A: The rate is calculated by dividing the total value of charged-off business loans by the total outstanding business loan portfolio.
Q: Why do economists track this metric?
A: It provides insights into economic health, credit market conditions, and potential early warning signs of economic stress.
Q: How often is this data updated?
A: The charge-off rate is typically reported quarterly by the Federal Reserve as part of its comprehensive banking sector analysis.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Business Loans, All Commercial Banks [CORBLACBS], retrieved from FRED.
Last Checked: 8/1/2025