Syndicated Loan Portfolios of Financial Institutions
These tables provide an overview of the distribution of risk in syndicated loan portfolios of banks and other financial institutions. A syndicated loan is a loan extended by a group of financial institutions (a loan syndicate) to a single borrower. Syndicates often include both banks and non-bank financial institutions, such as collateralized loan obligation structures (CLOs), insurance companies, pension funds, or mutual funds. After origination, shares of syndicated loans can be traded in the secondary market, changing the composition of the loan syndicate. Syndicated loans are included in the financial accounts of the individual lenders, but are not identified specifically as syndicated loans. The information provided in these tables provides an overview of the exposure of banks and other financial institutions to credit risk from syndicated loans. The tables summarize total exposures to syndicated loans, then break the data down by drawn credit lines, undrawn credit lines, and term loans.
All data are taken from the quarterly reports of the Shared National Credit (SNC) Program. Amounts reported are sum of all syndicated loan share holdings in each category. Total amounts outstanding is the sum of term loans, drawn lines of credit and other loans. Undrawn credit is the unused portion of lines of credit. Depository institutions include bank holding companies, financial holding companies, national banks, nonmember banks, state member banks, federal savings banks, state savings banks, credit unions, and savings and loan associations. Default risk is the two-year through-the-cycle probability of default provided by the reporting financial institution. Different from point-in-time ratings that are related to the current value of an instrument, through-the-cycle ratings are more stable. The data are available beginning with 2009:Q4.