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Proposed OCC “Agreement Table”

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

September 1, 1995

Author

Proposed OCC “Agreement Table”
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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photo of Ron J. Feldman
Ron J. Feldman
Financial Specialist

Ron Feldman is first vice president and chief operating officer at the Federal Reserve Bank of Minneapolis, where he leads Bank operations, including finance and budgeting, strategic planning, workforce and talent development, and performance against strategic objectives.

Feldman is also a primary adviser on monetary policy, playing a leadership role in preparing for Federal Open Market Committee meetings and in the development and communication of positions on monetary policy.

An expert on financial institutions and related government policies, Feldman has authored more than 50 articles on topics related to banking, finance, and monetary policy. He is one of the foremost authorities on the too-big-to-fail problem, co-authoring Too Big to Fail: The Hazards of Bank Bailouts, published by the Brookings Institution (2004).

Since joining the Bank in 1995, Feldman has served as a senior officer for Supervision, Regulation, and Credit and has run the Financial Services Support Office, which assists in the oversight of the Federal Reserve’s financial services.

He has a B.A. with distinction from the University of Wisconsin and an M.P.A. from the Maxwell School, Syracuse University, where he was a university fellow. He is a fellow of the National Academy of Public Administration.

Feldman is married and the father of three children. He is an active community member, serving on the boards of Second Harvest Heartland, the Talmud Torah of Minneapolis, and Ready, Set, Smile. He is on the Board of Visitors for the University of Wisconsin-Madison History Department.

 November 2019