American regulatory agencies relax regulations on leveraged loans.

date
06/12/2025
The Currency Supervision Bureau of the US Treasury Department and the independent agency Federal Deposit Insurance Corporation, created by the US Congress, jointly announced on the 5th that they are withdrawing the leveraged loan guidelines and related interpretive documents issued jointly by multiple departments in 2013. The US Currency Supervision Bureau and Federal Deposit Insurance Corporation stated that the guidelines and related interpretive documents issued in 2013 have led to problems. The market share of leveraged loan business in regulated banks has sharply declined, while non-bank institutions have significantly increased their leveraged loans. Some market analysts believe that the relaxation of regulations by US regulatory agencies will increase competition between banks and private credit institutions in leveraged loan business, and the high risk of leveraged loans should not be ignored.