Charge-Off Rate on Loans Secured by Real Estate, All Commercial Banks
CORSREACBS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.10
Year-over-Year Change
900.00%
Date Range
1/1/1985 - 1/1/2025
Summary
The Charge-Off Rate on Loans Secured by Real Estate tracks the percentage of commercial real estate loans that banks have written off as uncollectible. This metric provides critical insight into the health of the banking sector and real estate market's credit risk.
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 real estate-backed loans, reflecting potential financial stress in the property market. Economists use this trend to assess credit quality, banking sector stability, and potential systemic risks in real estate lending.
Methodology
The data is calculated by dividing the total value of charged-off real estate loans by the total outstanding real estate loan portfolio for all commercial banks.
Historical Context
Policymakers and financial regulators use this trend to monitor banking sector health and potentially adjust lending standards or monetary policy.
Key Facts
- Represents the percentage of real estate loans deemed unrecoverable by commercial banks
- Indicates potential financial stress in the real estate lending market
- Helps economists and regulators assess banking sector credit quality
FAQs
Q: What does a high charge-off rate indicate?
A: A high charge-off rate suggests increased financial stress in the real estate market and potential credit quality issues for commercial banks.
Q: How often is this data updated?
A: The Federal Reserve typically updates this data quarterly, providing a current snapshot of real estate loan performance.
Q: Why do banks charge off real estate loans?
A: Banks charge off loans when they determine that the debt is unlikely to be collected, often due to prolonged default or significant property value depreciation.
Q: How do charge-off rates impact lending practices?
A: High charge-off rates can lead banks to tighten lending standards, reduce loan availability, or increase interest rates to mitigate perceived risks.
Q: What are the limitations of this metric?
A: The charge-off rate provides a historical view and may not immediately reflect current market conditions or future lending risks.
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Citation
U.S. Federal Reserve, Charge-Off Rate on Loans Secured by Real Estate, All Commercial Banks [CORSREACBS], retrieved from FRED.
Last Checked: 8/1/2025