The Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency published the 2025 Shared National Credit (SNC) Program report, concluding that credit risk in large, syndicated bank loans remains moderate, with trends shaped by borrowers’ ability to manage higher interest expenses and other macroeconomic factors. The review covered SNC loans originated on or before June 30, 2025 and assessed shared loan commitments of USD 100 million or more across multiple regulated financial institutions, with a focus on leveraged loans and stressed borrowers. The SNC portfolio comprised 6,857 borrowers and USD 6.9 trillion in commitments, up 6% from a year earlier. The share of “non-pass” loans rated special mention or classified declined to 8.6% of total commitments from 9.1% in 2024, driven primarily by growth in new commitments rather than improved credit quality. U.S. banks held 45% of total SNC commitments but 22% of non-pass loans, down slightly from the prior year; leveraged loans represented nearly half of total commitments and 81% of non-pass loans.
Federal Reserve Board 2026-01-12
Federal Reserve, FDIC and OCC release 2025 Shared National Credit report finding syndicated loan credit risk remains moderate
The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency released the 2025 Shared National Credit Program report, indicating moderate credit risk in large syndicated bank loans due to borrowers' management of higher interest expenses and macroeconomic factors. The report noted a 6% increase in commitments to USD 6.9 trillion, with "non-pass" loans declining to 8.6% of total commitments, primarily due to new commitments rather than improved credit quality.