Delinquency Rates at Commercial Banks

It seems logical that even a modest increase in consumers' debt burden should lead to rising delinquencies. This does not seem to be the case. The latest release from the Federal Reserve Board on the 100 largest banks shows that quarter's delinquency rates on residential mortgages have fallen from 2.55 percent in the second quarter of 2001 to 2.20 percent in the third quarter of 2002. Over the same period, delinquency rates on bank credit cards were virtually unchanged. Delinquencies on other forms of consumer credit did not display any noticeable trend. The data displayed in the chart below are seasonally adjusted. Delinquent loans are those past due 30 days or more accruing interest, as well as those in a non-accrual status measured as a percentage of end-of-period loans.

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