Agencies Issue 2021 Shared National Credit Review — 2022-02-14

Federal bank regulatory agencies today released the 2021 Shared National Credit (SNC) Review Report. According to the two SNC examinations conducted last year, credit risk for large syndicated loans improved modestly in 2021, but remains high. The elevated risk is largely attributed to the effects of COVID-19. A recovery in commodity prices has led to significant improvement in the loans to the oil and gas sector that is partially offset by year over year weakening in commercial real estate (CRE), particularly in the hotel, office, and retail sub-sectors. The 2021 SNC 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 the examination of SNC loans originated on or before June 30, 2021.