![]()
In March 2013, the OCC, FRB, and FDIC jointly issued guidance on leveraged lending to replace guidance in place since 2001. Leveraged loans were defined as loans with significant financial leverage that are not asset-based loans (i.e., reliance on enterprise value). The guidance required banks to identify leveraged loans at inception and in their portfolios, track their exposure to leveraged loans, and adhere to certain standards in underwriting, risk rating, and portfolio management for such loans.
Read More