Author
Ron J. Feldman
Financial Specialist
Proposed OCC “Agreement Table”
| Credit Assessment Categories for Loans Used by the OCC |
Credit Assessment Categories
|
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| Loans categorized as "high pass" are believed to be the most likely to repay fully, while loans classified as "loss" are the least likely to repay fully.) | 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| High Pass | 97% |
95% |
3% |
1% |
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| Middle Pass | 2% |
3% |
96% |
98% |
92% |
9% |
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| Other Pass | 1% |
2% |
1% |
1% |
5% |
85% |
5% |
|||
| Special Mention | 3% |
5% |
90% |
8% |
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| Substandard | 1% |
5% |
90% |
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| Doubtful | 2% |
100% |
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| Loss | 100% |
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Reading the Table:
Each cell of the table displays the percentage of all loans in a given
bank credit quality category that the OCC has assigned to a given OCC
credit quality category. For example, the OCC assigned "high pass" to
97 percent of the loans graded "1" by the bank.
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