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Concentrations / Portfolio Management
A concentration of credit consists of direct, indirect, or contingent obligations exceeding 25 percent of a bank’s capital structure. In general concentrations may involve one borrower, an affiliated group of borrowers, or borrowers engaged in or dependent on one industry.
A bank’s loan portfolio is typically its largest asset and predominate source of revenue. Consequently, it is also one of the greatest sources of risk, making effective portfolio management a key factor in bank safety and soundness.
Learn MoreConcentrations of Credit (Comptroller’s Handbook, December 2011)
Provides examples of concentrations of credits, discusses key factors, and provides examiner guidance
Loan Portfolio Management (Comptroller’s Handbook, April 1998)
Concentrations in Commercial Real Estate Lending (OCC 2006-46, December 2006), Guidance (Federal Register, December 12, 2006)
Concentrations of Credit: Revised Booklet (OCC 2011-48, December 13, 2011)