Noting an environment of “high” credit, strategic, compliance and operational risk, the OCC outlined nine priorities for ongoing midsize and community bank supervision in its Semiannual Risk Perspective report released yesterday.
The OCC said its examiners will focus on strategic planning, credit underwriting, cyber threats, operational risk, BSA/AML compliance, overall regulatory compliance, interest rate risk, fair lending and responsiveness to Matters Requiring Attention.
These priorities respond to increasing credit risk as competition for loans continues to grow, especially in more volatile commercial markets; to elevated compliance risks as banks prepare to implement the new TILA-RESPA integrated disclosures; and to pressure to hit strategic plan targets in a difficult environment. Other risk areas the OCC is monitoring include the effects of oil and gas prices, rising commercial real estate concentrations, accounting for loan and lease losses and exposure to nonbank servicers.
