FDIC's Supervisory Insights Winter Edition Focuses on Credit Risk — 2017-03-07

FDIC’s Supervisory Insights Winter Edition Focuses on Credit Risk The Federal Deposit Insurance Corporation (FDIC) today issued “Credit Risk Trends and Supervisory Expectation Highlights,” which appears in the Winter 2016 issue of Supervisory Insights. The article identifies trends in credit risk and emphasizes to bankers and examiners that now is the time to heed long-standing principles of sound risk-management practices. “Historically, financial institutions that have prudently managed loan growth have been better positioned to withstand periods of stress and continue to serve the credit needs of their local communities,” Doreen R. Eberley, director of the FDIC’s Division of Risk Management Supervision, said. “We encourage bankers to identify and correct loan underwriting and administration problems before they adversely affect the bottom line.” The article examines growth on bank balance sheets and effective risk-management practices related to commercial real estate, agriculture, and oil and gas-related lending.