Consumer credit risk was in retreat in 2021. It might begin to return next year, though not necessarily in a way that should worry bank investors yet.
The average rate of delinquent payments rose from October to November across loans from six large credit-card banks, according to master trust figures compiled by S&P Global Market Intelligence. So did the average rate at which bad card debts were charged-off. The increases were fairly small: Charge-offs rose from 0.9% to 0.95% of loans, and delinquency was up from 0.8% to 0.82%. And those levels are still superlow, roughly half the levels they were at two years ago.