2025 Shared National Credit Report: Agencies Warn of Modest Risk

Washington – Federal bank regulatory agencies have issued the 2025 Shared National Credit (SNC) report, indicating that credit risk associated with large, syndicated bank loans remains moderate. The report reflects a focus on leveraged loans and stressed borrowers across various industry sectors, analyzing aggregate loan commitments of $100 million or more shared by multiple regulated financial institutions.

According to the 2025 SNC portfolio, which includes 6,857 borrowers totaling $6.9 trillion in commitments, an increase of 6 percent from a year ago, nearly half of total SNC commitments are leveraged. Moreover, leveraged loans account for 81 percent of non-pass loans, raising concerns among regulators.

The percentage of loans that deserve management’s close attention—those rated ‘special mention’ and ‘classified’—decreased to 8.6 percent of total commitments from 9.1 percent in 2024. However, this decline is primarily attributed to growth in new commitments rather than an underlying improvement in credit quality. U.S. banks hold 45 percent of all SNC commitments but only 22 percent of non-pass loans, a slight decrease from the prior year.

“The continued moderation in credit risk underscores the resilience of our financial system,” said Julianne Fisher Breitbeil of the FDIC. “However, we remain vigilant about leveraged lending and its potential impact on overall financial stability.”

The report also highlights specific industry sectors, such as technology and real estate, which have experienced increased leverage. These sectors are under closer scrutiny by regulators to ensure they do not become sources of systemic risk.

Contact information for the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency is provided for further inquiries.

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