Charge-Off Rate on Other Consumer Loans, All Commercial Banks
COROCLACBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.21
Year-over-Year Change
181.40%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Other Consumer Loans tracks the percentage of consumer loans that banks have written off as uncollectible. This metric provides critical insight into consumer financial health and banking sector risk management.
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 commercial banks are unable to collect on consumer loans beyond standard credit categories. Economists use this trend to assess credit quality, potential economic stress, and consumer repayment capabilities.
Methodology
The rate is calculated by dividing the total dollar value of charged-off loans by the total outstanding loan balance, typically reported quarterly by commercial banks.
Historical Context
Policymakers and financial regulators use this data to monitor credit market conditions and potential systemic financial risks.
Key Facts
- Represents the percentage of consumer loans deemed unrecoverable by banks
- Provides early warning signals of potential economic distress
- Reflects broader trends in consumer financial health and lending practices
FAQs
Q: What does a rising charge-off rate indicate?
A: A rising charge-off rate typically suggests increasing financial stress among consumers and potential economic challenges.
Q: How often is this data updated?
A: The charge-off rate is usually updated quarterly by the Federal Reserve as part of its comprehensive banking sector reporting.
Q: Why do banks charge off loans?
A: Banks charge off loans when they determine that the debt is unlikely to be collected, typically after a prolonged period of non-payment.
Q: How does this metric impact lending practices?
A: High charge-off rates can lead banks to tighten lending standards and increase borrowing costs for consumers.
Q: What types of loans are included in this metric?
A: The metric covers consumer loans outside standard categories like mortgages and credit cards, including personal and installment loans.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Other Consumer Loans, All Commercial Banks [COROCLACBS], retrieved from FRED.
Last Checked: 8/1/2025