The aggregate loan commitment threshold for inclusion in the Shared National Credit (SNC) program will increase from $20 million to $100 million starting Jan. 1, 2018, said the federal banking agencies.
The change was made to adjust for inflation and shifts in the average loan size. It will provide regulatory relief to 82 financial institutions while reducing by two percent the dollar amount of loans identified as SNCs, the agencies – including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Comptroller of the Currency – stated.
Following this change, the SNC program will continue to have a portfolio of more than $4.2 trillion in credit commitments.
The SNC program is designed to review and assess the risk in the largest and most complex credits shared by multiple financial institutions. For the interagency program, which began in 1977, this marks the first increase in the dollar threshold for inclusion as an SNC since the program’s inception.
In addition, starting in 2018, annual SNC results will be posted after the third quarter examination, reflecting data as of June 30. Previously, the annual report came out after the first quarter examination, reflecting data as of Dec. 31.