Asset Quality Measures, Net Charge-Offs on All Loans and Leases, Lease Financing Receivables, All Commercial Banks
NCOALLLFRACB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
67.00
Year-over-Year Change
-2.90%
Date Range
1/1/1985 - 1/1/2025
Summary
This economic indicator tracks the total net charge-offs across all commercial bank loans and leases, representing the value of loans deemed uncollectible. It serves as a critical metric for assessing credit quality and potential financial system stress.
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 written off as uncollectible and any subsequent recoveries, providing insight into bank lending risk and overall economic health. Economists and financial analysts use this metric to evaluate credit market conditions and potential systemic financial challenges.
Methodology
Data is collected through regulatory reporting by commercial banks, aggregating charge-offs across various loan categories and comparing them to total loan portfolios.
Historical Context
Policymakers and financial regulators use this trend to monitor banking sector stability and assess potential economic downturns or credit market disruptions.
Key Facts
- Represents total value of loans deemed uncollectible by commercial banks
- Provides early warning signals for potential economic stress
- Includes charge-offs across multiple loan categories
FAQs
Q: What do net charge-offs indicate about the economy?
A: Net charge-offs can signal economic stress, with higher rates potentially indicating increased financial strain or economic downturn.
Q: How often is this data updated?
A: Typically, this data is updated quarterly by the Federal Reserve as part of standard financial reporting.
Q: Why are net charge-offs important for investors?
A: Investors use net charge-offs to assess bank health, credit risk, and potential economic challenges that might impact investment strategies.
Q: How do net charge-offs differ from loan defaults?
A: Net charge-offs represent loans written off after exhausting collection efforts, while defaults simply indicate missed payments.
Q: Can net charge-offs predict economic recessions?
A: While not a definitive predictor, rising net charge-offs can be an early indicator of potential economic contraction or financial system stress.
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Citation
U.S. Federal Reserve, Asset Quality Measures, Net Charge-Offs on All Loans and Leases, Lease Financing Receivables, All Commercial Banks [NCOALLLFRACB], retrieved from FRED.
Last Checked: 8/1/2025