WASHINGTON (Reuters) – The credit risk for large, syndicated loans, including leveraged loans, remains high and increased in 2020 as the COVID-19 pandemic took an economic toll, U.S. bank regulators cautioned Thursday.
A new regulatory report found that the level of “non-pass” loans nearly doubled in 2020, rising from 6.9% to 12.4%, with most of those riskier loans held by nonbanks.
U.S. banks accounted for 45% of the $5.1 trillion in large, syndicated loans, but held less than 25% of all non-pass loans.
(Reporting by Pete Schroeder)
