Interagency Guidance on Leveraged Lending (Fed. Reg. Version)

The OCC, FRB and FDIC have published in the Federal Register an updated supervisory guidance on leveraged lending. According to the regulators, such lending has been increasing since 2009 after declining during the financial crisis.

In the updated guidance, particular attention is given to the following areas:

• Establishing a sound risk-management framework,
• Underwriting standards,
• Valuation standards,
• Pipeline management,
• Reporting and analytics,
• Risk rating leveraged loans,
• Participants, and
• Stress testing.

Click here to view our original story on the guidance.

See: 78 FR 17766.