FOR IMMEDIATE RELEASE
June 27, 2002
Contact: Dean DeBuck
OCC Survey Shows Measured Response By Banks to Slowing Economy
WASHINGTON — The OCC's eighth annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened for the second consecutive year in a measured response to a slowing economy and pockets of deteriorating product performance.
As expected, tightening was most significant in the structured finance (leveraged lending) and syndicated/national loans—the products that experienced significant credit quality deterioration during the past three years. Standards for other commercial loan products were largely unchanged.
The survey's preliminary findings are:
The OCC surveyed the agency's examiners-in-charge at the 62 largest national banks and covered the 12-month period ending March 31, 2002. The aggregated loan portfolio of surveyed banks was approximately two trillion dollars and represented 90 percent of all outstanding loans in national banks.
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