Title of Report [omit “Audit of”]

September 2007 Report No. AUD-07-012 FDIC’s Participation in the Shared National Credit Program AUDIT REPORT Report No. AUD-07-012 September 2007 FDIC’s Participation in the Shared National Credit Program Results of Audit Background and Purpose of The SNC Program is a well-established interagency program with Audit appropriate interagency coordination and documentation. The FDIC has a role similar to that of the other banking agencies in A Shared National Credit (SNC) is defined as providing a periodic credit risk assessment of the largest and most any loan and/or formal loan commitment extended to a borrower by a supervised complex credits held by insured financial institutions in the institution (subject to supervision by one of the United States. federal banking agencies (FBA)), its subsidiaries, and affiliates that totals $20 The FDIC uses information from the SNC Program in risk million or more and (1) is shared by three or management examinations and analyses of emerging risks at more insured institutions under a formal lending agreement or (2) a portion of which is large banks, including underwriting and industry performance sold to two or more insured institutions, with trends. There were a total of nine sites for the 2007 SNC review the purchasing institutions assuming a pro rata where the FDIC examiners served as the Examiner-in-Charge. share of the credit risk. An agent originates a We reviewed three ...