Joint Release/Shared National Credits Review Notes High Credit Risk and Weaknesses Related to Leveraged Lending and Oil and Gas — 2015-11-05

Shared National Credits Review Notes High Credit Risk and Weaknesses Related to Leveraged Lending and Oil and Gas Credit risk in the Shared National Credit (SNC) portfolio remained at a high level, according to an annual review of large shared credits released today by federal banking agencies. The SNC 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 to assess risk in the largest and most complex credits shared by multiple financial institutions. Leveraged lending, which accounts for approximately one quarter of the SNC portfolio, remained a focus of the agencies. This year's review found that banks are making progress in aligning their underwriting practices with the leveraged lending guidance issued by regulators in 2013.