U.S. flag

An official website of the United States government

Banker Resource Center

Credit

Credit risk arises from the potential that a borrower or counterparty will not repay a debt obligation. Loans and certain types of off-balance sheet items, such as letters of credit, lines of credit, and unfunded loan commitments, are the largest source of credit risk for most institutions. Regulations and guidance materials address establishing and maintaining prudent credit underwriting and monitoring practices that are commensurate with the size of the institution and the nature and scope of its activities.

Commercial & Industrial Lending

Commercial & Industrial lending includes secured or unsecured credits to business enterprises for commercial and industrial purposes and can include working capital advances, term loans, and loans to individuals for business purposes.
Learn More

Consumer Lending

Consumer lending includes closed- and open-end credit extended to individuals for household, family, and other personal expenditures and includes credit cards, auto loans, and student loans.
Learn More

Commercial Real Estate (CRE) Lending

CRE lending includes acquisition, development, and construction (ADC) financing and the financing of income-producing real estate. Income-producing real estate includes real estate held for lease to third parties and nonresidential real estate that is occupied by its owner or a related party.
Learn More

Residential Real Estate Lending

Residential real estate lending includes loans to purchase one-to-four family properties, loans to refinance the purchase of those properties, and closed-end loans and open-end lines of credit secured by the borrower’s equity in those properties.
Learn More

Agricultural Lending

Agricultural lending includes loans to fund the production of crops, fruits, vegetables, and livestock, or to fund the purchase or refinance of capital assets such as farmland, machinery and equipment, breeder livestock, and farm real estate improvements.
Learn More

Specialty Credit Risks

Specialty credit risks generally address the more complex lending activities associated with counterparty credit risk, country risk, oil and gas credits, and shared national credits.
Learn More

Other Credit-Related Resources

Appraisals and Other Valuation Products
Allowance for Loan and Lease Losses
Interagency Guidance on Credit Risk Review Systems updates and replaces existing guidance on the elements of an effective credit risk review system.