Private Credit

Regulators Rescind 2013 Leveraged-Lending Guidance, Lifting Limits on Risky Bank Loans

Leave a Comment / Banking Regulation, Financial Risk, Leveraged Lending, Private Credit, Private Equity / By

Executive Summary In early December 2025, U.S. regulators including the FDIC and the Office of the Comptroller of the Currency officially rescinded the 2013 leveraged‐lending guidance, which had previously discouraged banks from underwriting loans with debt‐to‐earnings ratios above six times, particularly to private-equity backed or unprofitable tech firms [1][3]. The rollback is expected to shift …

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Regulators Lift Caps on Leveraged Lending — What It Means for Banks and Risk

Leave a Comment / Bank Capital, Banking Regulation, Credit Risk, Leveraged Lending, Private Credit / By

Executive Summary NYSE regulators FDIC and OCC have withdrawn the 2013 leveraged-lending guidance, ending formal caps (notably a 6× debt/EBITDA limit) and restrictive venture lending standards, citing competitive disadvantage and excessive rigidity in past years. These changes are already effective and accompany additional easing of capital rules (e.g., community bank leverage ratios), but criticism warns …

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