In the Winter 2016 issue of Supervisory Insights, the FDIC described expansions of banks' balance sheets, trends in credit risk, and principles of sound risk management practices. The FDIC article, titled "Credit Risk Trends and Supervisory Expectation Highlights," focused on risks relating to three loan categories: commercial real estate, agriculture, and oil and gas-related lending.
The article included examples of feedback from FDIC examiners regarding common weaknesses observed in loan underwriting at banks, and highlighted the FDIC's supervisory expectations concerning credit risk management practices.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
