Charge-Off Rate on Consumer Loans, Banks Not Among the 100 Largest in Size by Assets
CORCOBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.79
Year-over-Year Change
112.98%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Consumer Loans for smaller banks tracks the percentage of consumer loan balances that banks have written off as uncollectible. This metric provides critical insight into consumer credit health and potential economic stress in the 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 rate at which banks remove consumer loan debt from their books due to non-payment, reflecting underlying consumer financial challenges. Economists use this trend to assess credit risk, consumer financial stability, and potential economic downturns.
Methodology
The data is calculated by dividing the total value of charged-off consumer loans by the total outstanding consumer loan portfolio for banks not among the 100 largest by asset size.
Historical Context
Policymakers and financial regulators use this metric to monitor credit market conditions and potential systemic risks in the banking sector.
Key Facts
- Measures loan write-offs for smaller banks
- Indicates consumer financial stress levels
- Provides early warning signals for economic challenges
FAQs
Q: What does a rising charge-off rate indicate?
A: A rising charge-off rate suggests increasing financial stress among consumers and potential economic challenges. It may signal higher unemployment or economic uncertainty.
Q: How do charge-off rates differ for smaller banks?
A: Smaller banks may experience different charge-off rates compared to larger institutions due to more localized economic conditions and diverse loan portfolios.
Q: How is this metric calculated?
A: The charge-off rate is calculated by dividing the total value of defaulted loans by the total outstanding loan balance for banks not among the top 100 by asset size.
Q: Why are charge-off rates important for policymakers?
A: Charge-off rates help policymakers assess credit market health, potential economic risks, and the need for financial interventions or regulatory adjustments.
Q: How frequently is this data updated?
A: The Federal Reserve typically updates this metric quarterly, providing a consistent snapshot of consumer loan performance for smaller banks.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Consumer Loans, Banks Not Among the 100 Largest in Size by Assets [CORCOBS], retrieved from FRED.
Last Checked: 8/1/2025