Joint Release/Agencies Issue Shared National Credit Review — 2021-02-25

Credit risk for large, syndicated loans has increased over the last year, according to the 2020 Shared National Credit (SNC) Review released by federal bank regulatory agencies today. The elevated risk is largely attributed to the effects of COVD-19. While risk has increased, many agent banks have strengthened their risk management systems since the prior downturn and are better equipped to measure and mitigate risks associated with loans in the current environment. The review, which evaluates the quality of large syndicated loans, was conducted by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, and reflects examination of SNC loans originated on or before June 30, 2020. The 2020 results provide additional analysis focusing on borrowers in five industries that were affected significantly by the pandemic: entertainment and recreation, oil and gas, real estate, retail, and transportation services.