Charge-Off Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks
CORCREXFACBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.21
Year-over-Year Change
600.00%
Date Range
1/1/1991 - 1/1/2025
Summary
This economic indicator tracks the percentage of commercial real estate loans that banks have written off as uncollectible. It provides critical insight into the health of commercial lending and potential stress in the real estate market.
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
The charge-off rate reflects the quality of commercial real estate loan portfolios and serves as an early warning signal for potential financial distress in the banking sector. Economists and financial analysts use this metric to assess credit risk and overall economic stability.
Methodology
The data is collected by aggregating charge-off amounts from all commercial banks and calculating the percentage relative to total outstanding commercial real estate loans.
Historical Context
Policymakers and financial regulators use this trend to monitor banking sector risk and potentially adjust monetary or lending policies.
Key Facts
- Represents the percentage of commercial real estate loans deemed unrecoverable
- Excludes farmland-specific loans in its calculation
- Provides a snapshot of banking sector credit quality
FAQs
Q: What does a rising charge-off rate indicate?
A: A rising charge-off rate suggests increasing financial stress in commercial real estate lending and potential economic challenges.
Q: How often is this data updated?
A: The Federal Reserve typically updates this data quarterly, providing a current view of commercial lending conditions.
Q: Why exclude farmland from this metric?
A: Farmland loans have distinct risk characteristics and are analyzed separately to provide more precise insights into commercial real estate lending.
Q: How do banks determine a loan is a charge-off?
A: Banks typically classify a loan as a charge-off when they determine the debt is unlikely to be collected, usually after a prolonged period of non-payment.
Q: What economic factors influence charge-off rates?
A: Factors like interest rates, economic growth, property market conditions, and overall business performance can significantly impact commercial real estate loan charge-off rates.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks [CORCREXFACBS], retrieved from FRED.
Last Checked: 8/1/2025