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OCC Bulletin 2020-50 | May 8, 2020

Credit Risk: Interagency Guidance on Credit Risk Review Systems


Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties


The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the agencies) today issued the "Interagency Guidance on Credit Risk Review Systems." This interagency guidance reflects current credit risk review practices.

This bulletin rescinds OCC Bulletin 2019-49, "Credit Risk Review: Notice and Request for Comment on Proposed Interagency Guidance on Credit Risk Review Systems."

Note for Community Banks

The "Interagency Guidance on Credit Risk Review Systems" applies to the OCC’s supervision of community banks.1


The interagency guidance

  • discusses a system of independent, ongoing credit review designed for sound management of credit risk.
  • describes appropriate communication regarding the performance of a bank’s loan portfolio to management and the board of directors.
  • replaces and rescinds attachment 1 to the 2006 "Interagency Policy Statement on the Allowance for Loan and Lease Losses." Attachment 1, "Loan Review Systems," contained the agencies' credit risk review guidance. Refer to OCC Bulletin 2006-47, "Allowance for Loan and Lease Losses (ALLL): Guidance and Frequently Asked Questions (FAQs) on the ALLL."

Further Information

Please contact Beth Nalyvayko, Bank Examiner, Commercial Credit Risk, Bank Supervision Policy, at (202) 649-6670.


Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

1 "Banks" refers to national banks and federal savings associations. Federal branches and agencies of foreign banking organizations may choose to, but are not required to, maintain allowances for credit losses on a branch or agency level.