Charge-off rate on all loans, all banks, United States

The charge-off rate on all loans, all banks, measures loans that US commercial banks wrote off as uncollectible during the quarter, less recoveries on loans written off earlier, as an annualized percent of average loans. The Federal Reserve calculates it from banks' quarterly Call Reports and publishes it, seasonally adjusted, alongside the delinquency rate.

Charge-offs are the point where bad loans become actual losses. Banks reserve for expected losses in advance, but the charge-off rate shows what has been realized, and it drives how much banks must set aside to rebuild their allowances. Credit cards have by far the highest charge-off rates of any loan type, so movements in card losses often explain most of the change in the total.

Read it as a lagging measure. Loans usually pass through delinquency for months before they are charged off, so the rate peaks well after an economic downturn begins and keeps rising after delinquencies have turned. Accounting rules and bank policy affect timing: some banks charge off sooner than others, and large sales of problem loans can move losses between quarters. For each bank's own figure, see the net charge-off ratio ranking, built from the same Call Reports.

Charge-off rate on all loans, all banks is at its lowest since Q3 2023, when it stood at 0.52%. Within ten years, charge-off rate on all loans, all banks beats 72% of readings; earlier years held charge-off rate on all loans, all banks higher.

Net charge-offs as an annualized percent of average loans, all US commercial banks, seasonally adjusted.

Federal Reserve Board publishes charge-off rate on all loans, all banks quarterly in Charge-off and delinquency rates, in percent and is seasonally adjusted. Code: STFBQC%STFBAIL_MA.Q. Method for charge-off rate on all loans, all banks.