Leveraged-Lending Risks Remain High, U.S. Bank Regulators Say
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Risks associated with leveraged lending remain a concern for the Federal Reserve and other top federal bank regulators, according to a new government report.
The Shared National Credit Review, which was released on Monday by the Fed, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp., said that the loans continue to face issues with borrower protections. The lending is often tied to highly-indebted corporations with a “significant portion” of the riskiest loans made by non-bank firms, the report said.