February 2008
Leveraged Lending
This publication is part of:
Collection: Comptroller's Handbook
Series: Safety and Soundness
Category: Asset Quality
Transmittal
Series:Safety and Soundness
Category:Asset Quality
Leveraged Lending Cover Letter(PDF)
Overview
This booklet addresses the fundamentals of leveraged finance, summarizes leveraged lending risks, and discusses how a bank can prudently manage these risks.
Applicability
This booklet applies to the OCC's supervision of national banks. References to national banks in this booklet also generally apply to federal branches and agencies of foreign banking organizations. Refer to12 USC 3102(b)and the "Federal Branches and Agencies Supervision" booklet of theComptroller's Handbookfor more information. For information applicable to federal savings associations, refer to the former Office of Thrift Supervision Examination Handbook section 214, "Other Commercial Lending."