Interagency Proposal on the Classification of Commercial Credit Exposures — 2005-03-28 [05-5982]

The OCC, Board, FDIC, and OTS (the agencies) request comment on their proposal to revise the classification system for commercial credit exposures. The proposal will replace the current commercial loan classification system categories "special mention," "substandard," and "doubtful" with a two-dimensional based framework. The proposed framework would be used by institutions and supervisors for the uniform classification of commercial and industrial loans; leases; receivables; mortgages; and other extensions of credit made for business purposes by federally insured depository institutions and their subsidiaries (institutions), based on an assessment of borrower creditworthiness and estimated loss severity. The proposed framework would not modify the interagency classification of retail credit as stated in the "Uniform Retail Credit Classification and Account Management Policy Statement," issued in February 2000.