OCC and FDIC Withdraw ‘Overly Restrictive’ Guidance 

Overview

The OCC and FDIC have decided to withdraw their guidance on leveraged lending, which they deemed overly restrictive. This move aims to alleviate constraints on lending practices.

Key Insights

• Guidance Withdrawal: The OCC and FDIC have retracted their guidance on leveraged lending.
  • Evidence: Official announcement by OCC and FDIC.
  • Verifiable: Yes, through official OCC and FDIC communications.

Why It Matters

This withdrawal is significant for corporate banking sectors involved in leveraged lending, as it may lead to increased lending activities and potentially more flexible credit conditions.

Actionable Implications

• Corporate Bankers: Re-evaluate lending strategies in light of the new regulatory environment.
• Risk Managers: Assess the impact of this change on credit risk profiles.