Large vs Small Bank Credit Card Delinquency Spread
Computed from FRED data
What is the current Large vs Small Bank Credit Card Delinquency Spread?
The credit card delinquency spread between large banks (top 100) and small banks reached 3.68 percentage points in Q4 2024, with small banks reporting significantly higher default rates. This divergence signals that community and regional banks — which serve more subprime borrowers — are absorbing disproportionate credit losses. Source: FRED (DRCCLACBS, DRCCLOCBS).
Big banks carry 3.7 points more credit card delinquency than small banks
Computed from FRED data. The spread was negative during the GFC, when small banks were more exposed. Today the largest lenders — with the biggest subprime books — are absorbing the losses.
Explore Further
Is this happening to you?
Do you bank with a smaller institution and wonder if they're under more stress?
How has Large vs Small Bank Credit Card Delinquency Spread changed over time?
Most affected counties
Counties with the highest consumer credit distress scores in the County Distress Index.
Explore all 3,144 counties →| Period | Value | YoY Change |
|---|---|---|
| Q4 2025 | 3.68 pts | −0.4 pts |
| Q3 2025 | 3.77 pts | −0.5 pts |
| Q2 2025 | 4.01 pts | −0.5 pts |
| Q1 2025 | 4.1 pts | −0.5 pts |
| Q4 2024 | 4.08 pts | −0.7 pts |
| Q3 2024 | 4.26 pts | −0.4 pts |
| Q2 2024 | 4.54 pts | −0.1 pts |
| Q1 2024 | 4.6 pts | −0.2 pts |
| Q4 2023 | 4.77 pts | +0.2 pts |
| Q3 2023 | 4.61 pts | −0.2 pts |
| Q2 2023 | 4.67 pts | +0.5 pts |
| Q1 2023 | 4.77 pts | +1.3 pts |
Frequently Asked Questions
What is the large vs small bank delinquency spread?
This indicator measures the gap between credit card delinquency rates at small banks vs large banks. A wider spread indicates that smaller banks serving more vulnerable borrowers are seeing worse performance.
Why is the bank size spread important?
When small banks have much higher delinquency than large banks, it signals stress concentrated among lower-income borrowers who rely on community banks and credit unions. The American Distress Index tracks this as an early warning of broadening credit distress.
Where does this data come from?
The data comes from the Federal Reserve's quarterly charge-off and delinquency statistics, published via FRED series DRCCLACBS (large banks) and DRCCLOCBS (small banks).
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