DEFINITION of 'Shared National Credit Program'

A program formed in 1977 to provide an efficient and consistent review and classification of any large syndicated loan. The program was established by the board of governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.

BREAKING DOWN 'Shared National Credit Program'

The program currently covers any loan or loan commitment of at least $20 million that is shared by three or more supervised institutions. The agencies' review is conducted annually, usually in mid-year. In its 2009 review, the Federal Reserve said that "criticized assets," which included large syndicated loans classified in categories including doubtful or loss, reached $642 billion, up from $373 billion in the preceding year.

RELATED TERMS
  1. Loan Syndication

    The process of involving several different lenders in providing ...
  2. Syndicate

    A professional financial services group formed temporarily for ...
  3. Lloyd's Of London

    A British insurance market where members join hands as syndicates ...
  4. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students ...
  5. Underwriter Syndicate

    A temporary group of investment banks and broker-dealers who ...
  6. Paid Syndication

    Web syndication is the promotion or inclusion of content on a ...
Related Articles
  1. Investing

    What is a Syndicated Loan?

    A syndicated loan is one that involves a group of lenders (called the syndicate) who pool their lending resources to make a loan.
  2. Insurance

    What is a Syndicate?

    A syndicate is a group of professionals that temporarily form into one entity to handle a large transaction that’s too big for each to handle alone.
  3. Personal Finance

    College Loans: Private vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  4. Investing

    Is Prospect Capital Exposed To Elevated Losses?

    According to a federal government report, the quality of leveraged loans has begun to deteriorate. Prospect Capital specializes in these types of loans.
  5. Financial Advisor

    Student Loan Debt: What Every Borrower Should Know

    If you must take on student debt, you should know the different types of loans and federal programs available well before graduating.
  6. Financial Advisor

    Student Loan Forgiveness for Teachers

    If you are a teacher and have student loans to repay, you may qualify for a loan forgiveness program.
  7. Financial Advisor

    Disadvantages of Federal Direct Loans

    Federal Direct Loans are popular ways to get federal help with college costs. However, they do have some drawbacks, especially for graduate students.
  8. Trading

    The Power Of Program Trades

    Learn how programs make up a significant portion of the volume traded each day.
RELATED FAQS
  1. What are the typical repayment terms for a syndicated loan?

    Learn more about syndicated loans and how they are structured, specifically including the typical repayment terms for a syndicated ... Read Answer >>
  2. Who generally structures a syndicated loan?

    Learn what syndicated loans are, including how they are structured and administrated, usual payment terms and costs associated ... Read Answer >>
  3. How risky is a syndicated loan for the lender?

    Read about risks associated with the syndicate loan market, including the problems of adverse selection and asymmetric information ... Read Answer >>
  4. How does an underwriter syndicate work together on an initial public offering (IPO)?

    Learn how underwriting syndicates work together when helping a company undertake an initial public offering, and learn about ... Read Answer >>
  5. What’s the difference between the two federal student loan programs (FFEL and Direct)?

    Learn about the differences between the two types of government-backed student loan programs: Federal Family Education Loans ... Read Answer >>
  6. Are Sallie Mae loans considered federal loans?

    Identify the differences between federal and private student loans, explore the qualities of each type of loan, and find ... Read Answer >>
Trading Center