Overnight Bank Funding Rate: 99th Percentile
This dataset tracks overnight bank funding rate: 99th percentile over time.
Latest Value
4.40
Year-over-Year Change
0.46%
Date Range
3/1/2016 - 8/7/2025
Summary
The Overnight Bank Funding Rate: 99th Percentile represents the highest funding costs for banks during short-term lending periods. This metric provides critical insight into potential stress and liquidity conditions 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
This economic indicator tracks the extreme upper range of overnight lending rates between financial institutions. Economists use it to assess potential financial market tensions and interbank lending dynamics.
Methodology
The rate is calculated by collecting and analyzing the highest 1% of overnight funding transactions among participating banks.
Historical Context
Policymakers and central bank officials monitor this metric to understand potential systemic risks and financial market pressures.
Key Facts
- Represents the highest 1% of overnight funding transactions
- Indicates potential stress in short-term lending markets
- Used as an early warning indicator for financial system volatility
FAQs
Q: What does the 99th percentile indicate about bank funding?
A: It shows the highest lending rates, potentially signaling market stress or liquidity challenges among financial institutions.
Q: How often is this data updated?
A: The Overnight Bank Funding Rate is typically updated daily, providing real-time insights into short-term lending markets.
Q: Why do economists care about this metric?
A: It serves as an important indicator of potential financial market tensions and interbank lending conditions.
Q: How does this differ from other overnight lending rates?
A: Unlike standard rates, this metric focuses specifically on the extreme upper range of funding transactions.
Q: Can this metric predict financial crises?
A: While not definitive, significant spikes in the 99th percentile can be an early warning sign of potential market disruptions.
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Similar OBFR Trends
Citation
U.S. Federal Reserve, Overnight Bank Funding Rate: 99th Percentile [OBFR99], retrieved from FRED.
Last Checked: 8/1/2025