Shared National Credit Program

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.