Overnight Bank Funding Rate: 75th Percentile
OBFR75 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.33
Year-over-Year Change
0.00%
Date Range
10/8/2021 - 8/7/2025
Summary
The Overnight Bank Funding Rate: 75th Percentile represents a key metric of short-term borrowing costs in the interbank lending market. This indicator provides insights into the upper range of funding rates and helps economists understand banking system liquidity and lending dynamics.
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 metric captures the 75th percentile of actual overnight funding rates across U.S. banks, reflecting the higher-end cost of short-term interbank lending. Economists and financial analysts use this rate to assess banking sector funding conditions and potential stress in short-term credit markets.
Methodology
The rate is calculated by collecting actual overnight funding transactions from a broad range of financial institutions and determining the 75th percentile value.
Historical Context
Central banks and policymakers use this metric to monitor banking system health and assess potential monetary policy interventions.
Key Facts
- Represents the upper quartile of overnight bank funding costs
- Provides insights into banking sector liquidity conditions
- Used as a supplementary indicator for monetary policy analysis
FAQs
Q: How is the 75th percentile different from the median rate?
A: The 75th percentile represents a higher cost of funding compared to the median, capturing more expensive lending transactions in the banking system.
Q: Why do economists track this specific percentile?
A: The 75th percentile helps identify potential stress or variations in banking sector funding costs beyond the typical or median rates.
Q: How frequently is this data updated?
A: The Overnight Bank Funding Rate is typically updated daily, providing real-time insights into short-term lending markets.
Q: What implications does this rate have for monetary policy?
A: Fluctuations in this rate can signal changes in banking system liquidity and potentially influence Federal Reserve monetary policy decisions.
Q: Are there limitations to using this metric?
A: While informative, the 75th percentile represents only a portion of overall bank funding costs and should be analyzed alongside other financial indicators.
Similar OBFR Trends
Citation
U.S. Federal Reserve, Overnight Bank Funding Rate: 75th Percentile [OBFR75], retrieved from FRED.
Last Checked: 8/1/2025