Quarterly, Not Seasonally Adjusted
LRIN64MAO1Q156N • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
19.80
Year-over-Year Change
-2.94%
Date Range
1/1/2005 - 4/1/2017
Summary
This trend measures loan charge-off rates for commercial banks, providing insight into credit risk and lending conditions in the U.S. economy.
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 Loan Charge-Off Rate measures the ratio of loans that banks write off as uncollectible to their total loan portfolio. It serves as an indicator of credit quality and financial stability for the banking sector.
Methodology
The Federal Reserve collects this data from commercial banks across the United States.
Historical Context
Economists and policymakers monitor this trend to assess the health of the financial system and broader economic conditions.
Key Facts
- Charge-off rates provide an early signal of changes in credit quality.
- Higher charge-off rates indicate rising loan defaults and tighter lending standards.
- Charge-off rates tend to rise during economic downturns and decline during expansions.
FAQs
Q: What does this economic trend measure?
A: This trend measures the loan charge-off rate for commercial banks, which is the ratio of loans that banks write off as uncollectible to their total loan portfolio.
Q: Why is this trend relevant for users or analysts?
A: The loan charge-off rate provides insight into credit risk and lending conditions in the banking sector, serving as an indicator of financial stability and economic health.
Q: How is this data collected or calculated?
A: The Federal Reserve collects this data directly from commercial banks across the United States.
Q: How is this trend used in economic policy?
A: Economists and policymakers monitor this trend to assess the overall health of the financial system and make informed decisions about monetary and regulatory policies.
Q: Are there update delays or limitations?
A: The data is reported on a quarterly basis, so there may be a delay of several months before the most recent information is available.
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Citation
U.S. Federal Reserve, Quarterly, Not Seasonally Adjusted (LRIN64MAO1Q156N), retrieved from FRED.