Charge-Off Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets
CORBLOBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.53
Year-over-Year Change
381.82%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Business Loans for smaller banks tracks the percentage of business loan balances that are deemed uncollectible. This metric provides critical insight into the credit risk and financial health of smaller banking institutions.
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 rate at which smaller banks write off business loans as unrecoverable, reflecting potential financial stress in business lending markets. Economists use this trend to assess credit conditions, bank risk management, and overall economic resilience.
Methodology
The data is calculated by dividing the total value of charged-off business loans by the total outstanding business loan portfolio for banks not among the 100 largest in asset size.
Historical Context
Policymakers and financial regulators use this metric to monitor banking sector stability and potential economic challenges in small business lending.
Key Facts
- Tracks charge-off rates for smaller banks' business loan portfolios
- Indicates potential financial stress in business lending
- Provides insight into credit risk beyond largest financial institutions
FAQs
Q: What does a charge-off rate indicate?
A: A charge-off rate represents the percentage of loans a bank considers unlikely to be collected, signaling potential credit quality issues.
Q: Why focus on banks not among the 100 largest?
A: Smaller banks often have different lending practices and risk profiles compared to major national institutions, making their performance important for understanding diverse financial markets.
Q: How is this data collected?
A: The Federal Reserve collects this data through regulatory reporting requirements from banking institutions.
Q: What does a rising charge-off rate mean?
A: An increasing charge-off rate typically suggests growing financial stress among businesses and potential economic challenges.
Q: How frequently is this data updated?
A: The charge-off rate is typically reported quarterly, providing regular insights into banking sector credit conditions.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets [CORBLOBS], retrieved from FRED.
Last Checked: 8/1/2025