Asset Quality Measures, Net Charge-Offs on All Loans and Leases, Commercial and Industrial, All Commercial Banks
NCOALLCIACB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2,978.00
Year-over-Year Change
361.71%
Date Range
1/1/1985 - 1/1/2025
Summary
This economic indicator tracks the net charge-offs for commercial and industrial loans across all U.S. commercial banks, representing the value of loans deemed uncollectible. It serves as a critical barometer of credit quality and potential financial stress in the business lending 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
Net charge-offs reflect the difference between loans that have been written off as uncollectible and any subsequent recoveries, providing insight into the credit risk and financial health of commercial borrowers. Economists and financial analysts use this metric to assess the overall economic conditions and potential risks in the banking system.
Methodology
Data is collected by aggregating charge-off amounts reported by commercial banks to regulatory authorities, typically on a quarterly basis.
Historical Context
This trend is closely monitored by policymakers, central banks, and investors as an early warning indicator of economic stress and potential credit market challenges.
Key Facts
- Represents the value of loans written off as uncollectible by commercial banks
- Provides insight into credit quality and potential economic stress
- Tracked quarterly to assess banking sector health
FAQs
Q: What do net charge-offs indicate about the economy?
A: Higher net charge-offs can signal economic challenges, such as increased business failures or economic downturn. They reflect the credit risk and potential financial stress in the banking sector.
Q: How do net charge-offs impact bank lending?
A: Significant net charge-offs can lead banks to tighten lending standards, potentially reducing credit availability for businesses and slowing economic growth.
Q: How are net charge-offs calculated?
A: Net charge-offs are calculated by subtracting loan recoveries from the total value of loans written off as uncollectible during a specific period.
Q: Why do policymakers care about this metric?
A: Policymakers use net charge-offs as an early warning indicator of potential economic stress and to inform monetary and regulatory decisions.
Q: How often is this data updated?
A: The net charge-offs data is typically updated quarterly, providing a regular snapshot of the banking sector's credit quality.
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Citation
U.S. Federal Reserve, Asset Quality Measures, Net Charge-Offs on All Loans and Leases, Commercial and Industrial, All Commercial Banks [NCOALLCIACB], retrieved from FRED.
Last Checked: 8/1/2025