Asset Quality Measures, Net Charge-Offs on All Loans and Leases, To Consumers, All Commercial Banks
NCOALLCACB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
14,411.00
Year-over-Year Change
220.96%
Date Range
1/1/1985 - 1/1/2025
Summary
Net charge-offs represent the value of loans that banks have written off as uncollectible after accounting for recoveries. This metric is a critical indicator of credit quality and potential financial stress in the banking system.
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 trend measures the total value of loans deemed unrecoverable by commercial banks, reflecting the health of consumer and commercial lending portfolios. Economists use this data to assess credit risk, banking sector stability, and potential economic downturns.
Methodology
Data is collected through regulatory reporting by commercial banks, tracking the total value of loans written off minus any subsequent recoveries.
Historical Context
Policymakers and financial regulators use this metric to monitor banking system health and potential systemic risks.
Key Facts
- Represents total value of loans written off by commercial banks
- Indicates potential credit quality and economic stress
- Important indicator for financial sector health
FAQs
Q: What does a high net charge-off rate indicate?
A: A high net charge-off rate suggests increased credit risk and potential economic challenges, potentially signaling economic stress or recession.
Q: How often is this data updated?
A: The data is typically updated quarterly by the Federal Reserve, providing a regular snapshot of banking sector loan performance.
Q: Why do banks write off loans?
A: Banks write off loans when they determine that the debt is unlikely to be collected, typically after extended periods of non-payment or significant financial distress.
Q: How do net charge-offs impact banking profitability?
A: Higher net charge-offs directly reduce bank profitability by representing lost revenue and requiring additional loan loss provisions.
Q: What limitations exist in this data?
A: The metric only captures written-off loans and may not fully represent potential future credit risks or emerging economic trends.
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Citation
U.S. Federal Reserve, Asset Quality Measures, Net Charge-Offs on All Loans and Leases, To Consumers, All Commercial Banks [NCOALLCACB], retrieved from FRED.
Last Checked: 8/1/2025