Credit Risk Tied to Bank Loans Still Moderate, US Regulators Say

Credit risk tied to large bank loans remains moderate, but weak trends continue due to higher interest rates and compressed operating margins in some sectors, US bank regulators said Monday.

The 2024 Shared National Credit Program Report, which was released by the Federal Deposit Insurance Corp., Federal Reserve and Office of the Comptroller of the Currency, assessed the largest and most complex credit facilities shared by banks and nonbank investors.

The 2024 portfolio included 6,699 borrowers totaling $6.5 trillion in commitments, an increase of 1.8% from a year ago. Regulators said the percentage of loans that deserved close attention ...