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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Supervisory Policy and Guidance Topics

Credit Risk Management

Credit risk arises from the potential that a borrower or counterparty will fail to perform on an obligation. For most banks, loans are the largest and most obvious source of credit risk. However, there are other sources of credit risk both on and off the balance sheet. Off-balance sheet items include letters of credit unfunded loan commitments, and lines of credit. Other products, activities, and services that expose a bank to credit risk are credit derivatives, foreign exchange, and cash management services.
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Policy Letters

Agricultural Credit

SR 12-13
FFIEC Statement on the Impact of Drought Conditions on Financial Institutions
SR 11-14
Supervisory Expectations for Risk Management of Agricultural Credit Risk
SR 05-21
Guidance on the Examination Treatment of Assets Related to the Tobacco Transition Payment Program
SR 93-26 (IB)
Applicability of the Interagency Policy Statement on Documentation of Loans to Small and Medium-sized Businesses and Farms to the Activities of U.S. Branches and Agencies of Foreign Banks
SR 84-16 (PDF)
Farm and Agricultural-Related Loans  

Counterparty Credit Risk

SR 13-3
Interagency Guidance on Leveraged Lending
SR 11-10
Interagency Counterparty Credit Risk Management Guidance
SR 99-3 (SUP)
Supervisory Guidance Regarding Counterparty Credit Risk Management
SR 97-21 (SUP)
Risk Management and Capital Adequacy of Exposures Arising from Secondary Market Credit Activities
SR 96-17 (GEN)
Supervisory Guidance for Credit Derivatives
SR 93-69 (FIS)
Examining Risk Management and Internal Controls for Trading Activities of Banking Organizations

Country Risk / ICERC

SR 08-12
Revisions to the Guide to the Interagency Country Exposure Review Committee (ICERC) Process
SR 02-5
Interagency Guidance on Country Risk Management
SR 92-40
Call Report Treatment for Debt-for-Equity and Debt-for-Debt Exchanges

General Credit-Related and Examination Activities

SR 14-7
Loan Coverage Requirements for Safety and Soundness Examinations of Community State Member Banks
SR 14-4
Examiner Loan Sampling Requirements for State Member Bank and Credit Extending Nonbank Subsidiaries of Banking Organizations with $10-$50 Billion in Total Consolidated Assets
SR 13-5
Revisions to the Required Data Fields for the Interagency Loan Data Request
SR 11-15
Disposal of Problem Assets through Exchanges
SR 10-2
Interagency Statement on Meeting the Needs of Creditworthy Small Business Borrowers
SR 05-3
Interagency Guidance on Overdraft Protection Programs
SR 04-18
Bank Holding Company Rating System
SR 04-12
Supervision of State-Chartered Banks
SR 02-19
Use of Statistical Sampling in the Review of Commercial and Industrial Loans and Commercial Real Estate Loans during On-Site Safety and Soundness Examinations of Community Banks
SR 99-25 (SUP)
Minimum Documentation Standards for Loan Line Sheets
SR 99-24 (SUP)
Loan Write-Up Standards for Assets Criticized During Examinations
SR 96-38 (SUP)
Uniform Financial Institutions Rating System
SR 95-36 (SUP)
Bank Lending Terms and Standards
SR 95-20 (SUP)
Financial Standby Letters of Credit and Performance Standby Letters of Credit
SR 93-59 (FIS)
Interagency Uniform Core Report of Examination
SR 93-26 (IB)
Applicability of the Interagency Policy Statement on Documentation of Loans to Small and Medium-sized Businesses and Farms to the Activities of U.S. Branches and Agencies of Foreign Banks
SR 92-39
Notification to State Member Banks on Federal Reserve Confirmations of Charge-offs Declared for Tax Purposes

Retail Credits

SR 14-5 / CA 14-4
Interagency Guidance on Home Equity Lines of Credit Nearing Their End-of-Draw Periods
SR 13-20 / CA 13-23
Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans
SR 10-2
Interagency Statement on Meeting the Needs of Creditworthy Small Business Borrowers
SR 05-5
Interagency FAQs on the Agencies' Appraisal Regulations and Interagency Statement on Independence of Appraisal and Evaluation Functions
SR 03-1
Account Management and Loss Allowance Methodology for Credit Card Lending
SR 00-8 (SUP)
Revised Uniform Retail Credit Classification and Account Management Policy
SR 95-27 (SUP)
Interagency Statement on Appraisals for Affordable Housing Loans

Risk Management and Underwriting

SR 13-3
Interagency Guidance on Leveraged Lending
SR 14-5 / CA 14-4
Interagency Guidance on Home Equity Lines of Credit Nearing Their End-of-Draw Periods
SR 13-19 / CA 13-21
Guidance on Managing Outsourcing Risk
SR 13-18
Uniform Agreement on the Classification and Appraisal of Securities Held by Depository Institutions
SR 13-17
Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings
SR 12-11 / CA 12-10
Guidance on a Lender’s Decision to Discontinue Foreclosure Proceedings
SR 10-17
Underwriting Standards for Small Business Loans Originated under the Small Business Lending Fund Program
SR 07-5
Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities
SR 05-11
Interagency Credit Risk Management Guidance for Home Equity Lending
SR 04-7
SEC Guidance on the Potential Liability of Financial Institutions for Securities Law Violations Arising from Deceptive Structured Finance Products and Transactions
SR 04-1
Interagency Policy on Banks/Thrifts Providing Financial Support to Funds Advised by the Banking Organization
SR 03-22
Framework for Assessing Consumer Compliance Risk at Bank Holding Companies
SR 03-15
Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management
SR 03-4
Risk Management and Valuation of Mortgage Servicing Assets Arising from Mortgage Banking Activities
SR 02-10
Derivative Contracts Hedging Trust Preferred Stock
SR 01-12 (SUP)
Interagency Guidance on Loans Held for Sale
SR 01-7 (SUP)
Revisions to Article 9 of the Uniform Commercial Code
SR 98-25 (SUP)
Sound Credit Risk Management and the Use of Internal Credit Risk Ratings at Large Banking Organizations
SR 98-18 (SUP)
Lending Standards for Commercial Loans
SR 97-21 (SUP)
Risk Management and Capital Adequacy of Exposures Arising from Secondary Market Credit Activities
SR 95-36 (SUP)
Bank Lending Terms and Standards

Shared National Credits

SR 94-62 (FIS)
Shared National Credit Program - Interagency Agreement
 

Additional Resources

 

Manual References

  • Bank Holding Company Supervision Manual
    • Section 2010.2, "Supervision of Subsidiaries (Loan Administration and Lending Standards)"
    • Section 2010.10, "Supervision of Subsidiaries (Internal Loan Review)"
    • Section 2050.0, "Extensions of Credit to BHC Officials"
    • Section 2122.0, "Internal Credit-Risk Ratings at Large Banking Organizations"
    • Section 4090.0, "Country Risk"
  • Commercial Bank Examination Manual
    • Section 2025.1, "Counterparty Credit Risk Management"
    • Section 2040.1, "Loan Portfolio Management"
    • Section 2045.1, "Loan Participations, the Agreements and Participants"
    • Section 2080.1, "Commercial and Industrial Loans"
    • Section 2082.1, "Loan-Sampling Program for Certain Community Banks"
    • Section 2110.1, "Floor-Plan Loans"
    • Section 2115.1, "Leveraged Financing"
    • Section 2120.1, "Direct Financing Leases"
    • Section 2130.1, "Consumer Credit"
    • Section 2140.1, "Agricultural Loans"
    • Section 2142.1, "Agricultural Credit-Risk Management"
    • Section 2200.1, "Other Real Estate Owned"
    • Section 7020.1, "International – Loan Portfolio Management"
    • Section 7040.1, "International – Country Risk and Transfer Risk"
Last update: November 13, 2014