To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a joint press release, the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision announced the release of the Shared National Credit (SNC) review. The SNC reports a marked improvement in the quality of large syndicated bank loans. Additionally, adversely rated loans continue to decline, although certain industries continue to have a high concentration of such loans.
These results are based on analyses prepared in the second quarter of 2004 and reflect business and economic conditions at that time. Further details on industry trends and exposure risks are available in the press release.
Laurence C. Bonnemere
Assistant Vice President
Credit Risk Function