Specialty Credit Risks

Laws and Regulations

Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.

• Part 323 — Appraisals addresses requirements for a written appraisal for certain real estate-related transactions
• Appendix A to Part 364 — Interagency Guidelines Establishing Standards for Safety and Soundness provides operational and managerial standards for safety and soundness to include asset quality and asset growth
• Part 365 — Real Estate Lending Standards provides standards for real estate lending and addresses the adoption and maintenance of written policies for extensions of credit that are secured by real estate, or that are made for the purpose of financing permanent improvements to real estate

Supervisory Resources

Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.

• Counterparty Credit Risk
  • Interagency Supervisory Guidance on Counterparty Credit Risk (CCR) Management outlines sound practices for an effective CCR management framework
• Country Risk
  • Country Risk Management Practices describes elements of an effective risk management process to mitigate country risk for institutions engaged in international activities
  • Interagency Country Exposure Review Committee Process outlines how the agencies ensure consistent treatment of the transfer risk associated with banks’ foreign exposures to both public- and private-sector entities
• Oil and Gas
  • Prudent Risk Management of Oil and Gas Exposures provides guidance on reserve based lending, concentration management, and working with troubled borrowers for financial institutions with direct or indirect exposures
• Shared National Credit
• Shared National Credit Program overview and archived findings from the interagency review of large syndicated loans
• Shared National Credit Reporting forms and instructions to be used by financial institutions that are an agent or participant in a shared national credit
• Loan Commitment Threshold for inclusion in the shared national credit program

Other Resources

Supplemental information related to safe-and-sound banking operations.

• FDIC's Supervisory Insights — Summer 2018 article, “Oil Price Volatility and Bank Performance: A View from the Supervisory Process"
• FDIC's Supervisory Insights — Fall 2019 article, “Leveraged Lending: Evolution, Growth and Heightened Risk"