Net Percentage of Foreign Banks Increasing the Use of Interest Rate Floors

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

Latest Value

-5.30

Year-over-Year Change

-144.92%

Date Range

4/1/2011 - 7/1/2025

Summary

Measures the percentage of foreign banks increasing interest rate floors. Provides insight into global lending strategies and risk management approaches.

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 indicator tracks how foreign banks adjust their minimum interest rates. It reflects banking sector risk mitigation and lending policy trends.

Methodology

Surveys of foreign banks document changes in their interest rate floor practices.

Historical Context

Financial analysts use this data to understand global banking risk strategies.

Key Facts

  • Indicates global banking risk management
  • Reflects lending policy changes
  • Important for understanding credit markets

FAQs

Q: What are interest rate floors?

A: Minimum interest rates set by banks to protect against potential lending losses. Helps manage financial risk.

Q: Why do banks use interest rate floors?

A: To protect against low-interest environments and manage potential lending risks.

Q: How does this impact borrowers?

A: Can lead to higher minimum borrowing costs and more restrictive lending conditions.

Q: What does an increase in this metric mean?

A: Banks are becoming more cautious and implementing stricter lending protections.

Q: How frequently is this data collected?

A: Typically gathered through periodic banking surveys with varying update frequencies.

Related Trends

Citation

U.S. Federal Reserve, Net Percentage of Foreign Banks Increasing the Use of Interest Rate Floors (SUBLPFCITFNQ), retrieved from FRED.