The Region

Proposed OCC "Agreement Table"

The OCC's Credit Assessment of a Bank's Loans Broken Down by How the Bank Assessed the Same Loans

Ron J. Feldman - Financial Specialist

Published September 1, 1995  |  September 1995 issue

Credit Assessment Categories
for Loans Used by the OCC

Credit Assessment Categories
for Loans Used by a Bank

(Loans graded "1" are believed to have the greatest probability of full repayment, while loans graded "10" are believed to have the least chance of full repayment.)

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%
 
 
 
 
 
 
Middle Pass
2%
3%
96%
98%
92%
9%
 
 
 
 
Other Pass
1%
2%
1%
1%
5%
85%
5%
 
 
 
Special Mention
 
 
 
 
3%
5%
90%
8%
 
 
Substandard
 
 
 
 
 
1%
5%
90%
 
 
Doubtful
 
 
 
 
 
 
 
2%
100%
 
Loss
 
 
 
 
 
 
 
 
 
100%

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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