Work of the Comptroller for the Currency (OCC) is issuing guidance to nationwide banking institutions, federal cost savings associations, and federal branches and agencies (collectively, banking institutions) in connection with part of casual or implied expressions of help from international governments (suggested sovereign help) in determining a debtor’s obligor and center credit danger reviews. This guidance reminds banks that such expressions of informal or implied support should be viewed as no more than a mitigating factor when evaluating a borrower’s credit risk because implied sovereign support is not a legally binding guarantee.
Note for Community Banks
This guidance relates to all OCC-supervised banking institutions that have actually international credit exposures. Continue reading Implied or informal support From Foreign Governments