Federal Reserve Removes Nonfinancial Business Sector Data from Consumer Credit Reports

The Federal Reserve announced that it will discontinue reporting data from the nonfinancial business sector in its G.19 Consumer Credit Statistical Release, effective immediately. This change reflects the sector’s diminished role in issuing consumer credit, as the landscape of consumer lending has evolved significantly over the past decade.

Historically, nonfinancial businesses—such as retail chains offering store-branded credit cards and financing—played a substantial part in consumer credit markets. However, many of these companies have since transferred their credit operations to specialized financial institutions or have exited consumer lending altogether.

By removing the nonfinancial business sector from its consumer credit reporting, the Federal Reserve aims to provide a clearer and more accurate picture of consumer credit extended by traditional lenders such as banks, credit unions, and finance companies.

Economists and credit analysts believe this adjustment will enhance the usefulness of the data by focusing on the primary sources of consumer credit. This refinement is expected to improve analysis of credit trends, consumer debt levels, and economic forecasting.

The Federal Reserve emphasized that the change will have minimal immediate impact on overall credit statistics but noted that some historical comparisons may need to be adjusted due to the exclusion of the nonfinancial sector.

The shift also mirrors broader industry trends, as financial technology firms and banks increasingly dominate the consumer lending space, leveraging digital platforms to streamline loan approval and servicing processes.

As consumer credit continues to evolve, the Federal Reserve’s data reporting practices will likely continue to adapt to reflect current market realities and provide policymakers, researchers, and investors with relevant and timely information.