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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Press Releases

Joint Release

For Immediate Release
December 21, 2017

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

SNC using
$20 Million
SNC using
$100 Million
Net Change % Change
Commitments ($ Billions) $4,310 $4,218 ($92) (2%)
Borrower Count 7,036 5,463 (1,573) (22%)
Bank Count 197 115 (82) (42%)

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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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