This week we continue our conversation with Kathryn Dick, Managing Director, Promontory Financial Group. Kathy advises clients on regulatory issues, risk management, and capital market activities. Prior to Promontory, Kathy had a 26-year tenure at the Office of the Controller of the Currency.  Second of two parts – View part one

The Lead Left: There’s concern among bank that Leveraged Lending Guidelines shouldn’t be one-size-fits all.

Kathryn Dick: These are, after all, “guidelines,” But banks need to understand that the bar is set higher after the crisis. The banking agencies are comfortable with loans set within the boundaries of the guidance. Outside of those, you’ll have to defend your decision. And while it’s clear that some industries can withstand higher leverage, banks need to be able to show the loan is still a pass credit and be prepared for examiner scrutiny. In my opinion, it could take as long as five years for consistency to be established.