Supervisory Policy and Guidance Topics
The asset quality reflects the quantity of existing and potential credit risk associated with the loan and investment portfolios, other real estate owned, and other assets, as well as off-balance sheet transactions. An examiner's evaluation of asset quality should consider the adequacy of the allowance for loan and lease losses and weigh the exposure to counterparty, issuer, or borrower default under actual or implied contractual agreements. All other risks that may affect the value or marketability of an institution's assets, including, but not limited to, operating, market, reputation, strategic, or compliance risks should also be considered.
Policy LettersAsset Quality
Frequently Asked Questions on the Current Expected Credit Losses Methodology (CECL)
Interagency Guidance on the New Accounting Standard on Financial Instruments – Credit Losses
Guidance on Private Student Loans with Graduated Repayment Terms at Origination
Uniform Agreement on the Classification and Appraisal of Securities Held by Depository Institutions
Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings
Interagency Guidance on Leveraged Lending
Questions and Answers for Federal Reserve-Regulated Institutions Related to the Management of Other Real Estate Owned (OREO)
Policy Statement on Rental of Residential Other Real Estate Owned (OREO) Properties
Disposal of Problem Assets through Exchanges
Revised Uniform Retail Credit Classification and Account Management Policy
Minimum Documentation Standards for Loan Line Sheets
Loan Write-Up Standards for Assets Criticized During Examinations
Uniform Financial Institutions Rating System
Interagency Policy Statements on Supervisory Initiatives Released Today
Treatment of Value Impaired Classifications for Asset Quality Purposes
- Bank Holding Company Supervision Manual
- Section 2065.2, "Determining an Adequate Level for the Allowance for Loan and Lease Losses (Accounting, Reporting, and Disclosure Issues)"
- Section 2065.3, "Maintenance of an Appropriate Allowance for Loan and Lease Losses (Accounting, Reporting, and Disclosure Issues)"
- Section 2065.4, "ALLL Methodologies and Documentation (Accounting, Reporting, and Disclosure Issues)"
- Section 4020.2, "Banks: Asset Quality"
- Section 4060.1, "Consolidated (Asset Quality)"
- Commercial Bank Examination Manual
- Section 2020.1, "Investment Securities and End-User Activities" (see Table entitled, "General Debt Security Classification Guidelines")
- Section 2040.1, "Loan Portfolio Management"
- Section 2060.1, "Classification of Credits"
- Section 2200.1, "Other Real Estate Owned"