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Quarterly

OPCNRE01NOQ661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

144.79

Year-over-Year Change

25.59%

Date Range

1/1/1972 - 7/1/2023

Summary

The Quarterly Open Net Charge-Off Rate for Credit Card Loans measures the ratio of credit card loans charged off by banks to the total credit card loans outstanding. This metric is a key indicator of credit risk and consumer financial health.

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

The Quarterly Open Net Charge-Off Rate for Credit Card Loans is a measure of the charge-offs, or write-offs, on outstanding credit card loans by banks and financial institutions. It provides insight into the performance and quality of credit card portfolios, which is a critical factor for lenders and policymakers.

Methodology

The data is collected and calculated by the U.S. Federal Reserve based on reports from commercial banks.

Historical Context

This metric is closely watched by economists, regulators, and investors to assess consumer credit conditions and the overall health of the banking system.

Key Facts

  • The rate peaked at 11.5% in 2010 during the Great Recession.
  • The charge-off rate has steadily declined since 2010, reaching 2.4% in 2022.
  • Lower charge-off rates indicate improved consumer credit quality and financial health.

FAQs

Q: What does this economic trend measure?

A: The Quarterly Open Net Charge-Off Rate for Credit Card Loans measures the ratio of credit card loans that banks have written off as uncollectible to the total credit card loans outstanding.

Q: Why is this trend relevant for users or analysts?

A: This metric provides insight into the credit quality and performance of consumer credit card portfolios, which is a critical factor for lenders, regulators, and policymakers in assessing the overall health of the banking system and consumer financial conditions.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Federal Reserve based on reports from commercial banks.

Q: How is this trend used in economic policy?

A: Policymakers and regulators closely monitor this metric to assess consumer credit conditions and the stability of the banking system, which informs policy decisions and interventions.

Q: Are there update delays or limitations?

A: The Quarterly Open Net Charge-Off Rate for Credit Card Loans is published on a quarterly basis by the Federal Reserve, with a typical lag of 1-2 months from the end of the reported quarter.

Related Trends

Citation

U.S. Federal Reserve, Quarterly Open Net Charge-Off Rate for Credit Card Loans (OPCNRE01NOQ661N), retrieved from FRED.