Fed reports modest rise in US bank loan delinquencies in 2025

Investing.com -- US banks saw a slight increase in loan delinquencies across multiple categories in 2025, the Federal Reserve said Wednesday.

The central bank reported that delinquency rates rose modestly for consumer, commercial and residential real estate loans, even as loan growth remained steady throughout the year.

The Fed said most US lenders maintain strong capital positions and the banking system remains stable overall.

The report highlighted concerns about the private credit sector after several high-profile nonbank defaults occurred, despite regulatory data showing limited delinquencies in the nonbank sector. Some banks are now reviewing their collateral management practices for exposures to private markets, according to the Fed.

Consumer loan delinquencies fell during most of 2025 but increased moderately in the final two quarters of the year, the supervision and regulation report stated.

Auto and credit card loan delinquencies both rose in the second half of 2025, but both categories finished the year at lower levels than 2024, the Fed said.

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