Overnight Bank Funding Rate
This dataset tracks overnight bank funding rate over time.
Latest Value
4.33
Year-over-Year Change
0.00%
Date Range
3/1/2016 - 8/7/2025
Summary
The Overnight Bank Funding Rate (OBFR) is a key benchmark that reflects the actual overnight borrowing costs for U.S. banks and financial institutions. It provides a more comprehensive and representative measure of short-term lending rates compared to previous indicators.
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 rate represents the weighted average of overnight unsecured funding transactions between banks and other financial institutions. Economists and policymakers use it as a critical indicator of short-term credit market conditions and banking system liquidity.
Methodology
The Federal Reserve calculates the OBFR by aggregating and weighting actual overnight funding transactions reported by participating financial institutions.
Historical Context
The OBFR is used by the Federal Reserve as a key reference rate for monetary policy analysis and understanding short-term credit market dynamics.
Key Facts
- Replaced the federal funds effective rate as a primary overnight funding benchmark in 2018
- Includes a broader range of financial institutions in its calculation
- Provides more comprehensive coverage of actual overnight lending transactions
FAQs
Q: How is the OBFR different from the federal funds rate?
A: The OBFR includes a broader range of financial institutions and reflects actual overnight funding transactions, providing a more comprehensive market view compared to the federal funds rate.
Q: Why do economists pay attention to the OBFR?
A: The OBFR offers insights into short-term credit market conditions and banking system liquidity, which are crucial for understanding overall financial market health.
Q: How often is the OBFR calculated?
A: The OBFR is calculated daily, providing a current and dynamic view of overnight funding costs in the financial system.
Q: What impact does the OBFR have on monetary policy?
A: The Federal Reserve uses the OBFR as a key indicator for assessing short-term lending conditions and making monetary policy decisions.
Q: Are there limitations to the OBFR?
A: While comprehensive, the OBFR relies on reported transactions and may not capture all potential market nuances or emerging financial trends.
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Similar OBFR Trends
Citation
U.S. Federal Reserve, Overnight Bank Funding Rate [OBFR], retrieved from FRED.
Last Checked: 8/1/2025