Joint Release/Shared National Credit Review Finds Risk Remains High, but Underwriting and Risk Management Improve — 2016-07-29

Shared National Credit Review Finds Risk Remains High, but Underwriting and Risk Management Improve Credit risk in the Shared National Credit (SNC) portfolio remained elevated, but underwriting and risk management practices improved from prior assessments, according to a review of large shared and complex credits released today by federal banking agencies. The SNC Program Review has been conducted by the Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) since 1977. The latest review showed the level of adversely rated assets remained higher than in previous periods of economic expansion, raising the concern that future losses and problem loans could rise considerably in the next credit cycle.