Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of Comptroller of the Currency
Agencies Announce Shared National Credit Definition
Change
Aggregate Loan
Commitment Threshold Increased to Adjust for Inflation, and Changes in Average
Loan Size
To adjust for
inflation and changes in average loan size, the federal banking agencies on Thursday
announced that, effective January 1, 2018, the aggregate loan commitment threshold
for inclusion in the Shared National Credit (SNC) program will increase from
$20 million to $100 million. This change
will reduce reporting burden for a substantial number of banking institutions, with
no material impact on the size of the portfolio evaluated.
The reporting change provides regulatory
relief to 82 financial institutions while reducing the dollar amount of loans identified
as SNCs by 2 percent. As a result, the
SNC program will continue to reflect a portfolio of more than $4.2 trillion in
credit commitments. The
table below provides details for the planned change.
The SNC program is an
interagency review and assessment of risk in the largest and most complex
credits shared by multiple financial institutions. The interagency program began in 1977. This is the first increase in the dollar
threshold for inclusion as a SNC since the program’s inception.
Further, the agencies announced
that, starting in 2018, annual SNC results will be reported after the third
quarter examination, reflecting data as of June 30. Previously the annual report was issued after
the first quarter examination, reflecting data as of December 31.
Effect of SNC Definition Change on Commitments, Borrowers, and Banks
As of September 30, 2016
Media Contacts:
Federal Reserve Darren Gersh 202-452-2955
FDIC Julianne
Breitbeil 202-898-6895
OCC Stephanie
Collins 202-649-6870
FDIC: PR-101-2017
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