Federal regulators on Friday (5 December) relaxed underwriting guidelines banks often cited as a barrier to leveraged lending and a boon for private credit. But multiple market players told 9fin they aren’t expecting syndicates to immediately jump back into the higher-leverage deals that have become the hallmark of direct lenders.

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued the joint statement rescinding a 2013 ruleset that largely governed underwriting standards for bank institutions. Notably, the Federal Reserve joined the FDIC and OCC in issuing the guidance in 2013 but did not join the latest rescission.

Eagle-eyed readers might remember that Treasury Secretary Scott Bessent alluded to this in May at the Milken Institute Global Conference, saying the OCC and FDIC heads would “redo” regulation around capital markets.