FDIC: Credit Risk Stable in 2025 Shared National Credit Program

WASHINGTON – Federal bank regulatory agencies have released their 2025 Shared National Credit (SNC) report, revealing a moderate level of credit risk associated with large syndicated bank loans. The report indicates that the economic landscape remains stable as borrowers manage higher interest expenses and other macroeconomic factors.

The 2025 SNC report examines loans originated up to June 30, 2025, focusing on leveraged loans and stressed borrowers across various industry sectors. It evaluates loan commitments of $100 million or more shared by multiple regulated financial institutions. The report includes 6,857 borrowers with total commitments reaching $6.9 trillion, a 6 percent increase from the previous year.

The percentage of loans requiring management’s close attention (non-pass loans rated ‘special mention’ and ‘classified’) decreased to 8.6 percent of total commitments, down from 9.1 percent in 2024. This decline is attributed primarily to an increase in new commitments rather than a fundamental improvement in credit quality. U.S. banks hold 45 percent of all SNC commitments but only 22 percent of non-pass loans, reflecting a slight decrease from the previous year.

Approximately half of total SNC commitments are leveraged, with 81 percent of non-pass loans being leveraged loans. This highlights the ongoing reliance on leverage in the financial sector and the potential risks associated with such practices.

The report serves as an important tool for regulators to monitor credit risk in the banking system and ensure stability in the economy. It also provides valuable insights into the health of various industries and their ability to manage debt obligations.