Interagency Guidance on Leveraged Lending

This guidance outlines for agency-supervised institutions high-level principles related to safe-and-sound leveraged lending activities, including underwriting considerations, assessing and documenting enterprise value, risk management expectations for credits awaiting distribution, stress-testing expectations, pipeline portfolio management, and risk management expectations for exposures held by the institution. This guidance applies to all financial institutions supervised by the OCC, Board, and FDIC that engage in leveraged lending activities. The number of community banks with substantial involvement in leveraged lending is small; therefore, the agencies generally expect community banks to be largely unaffected by this guidance.

The latest form for Interagency Guidance on Leveraged Lending expires 2022-11-30 and can be found here.

Interagency Guidance on Leveraged Lending - Implementation

Federal Enterprise Architecture: Economic Development - Financial Sector Oversight