OCC Flags Supervision Priorities for 2017

The OCC today released its bank supervision operating plan for fiscal year 2017, identifying what each of the agency’s supervisory operating units will focus on for the new federal fiscal year starting on Oct. 1. Overall, the OCC will develop supervisory strategies for commercial and retail loan underwriting, business model sustainability and viability, operational resilience, anti-money laundering compliance management and change management processes to address regulatory changes.

In coordination with examiners at other regulatory agencies, the OCC’s midsize and community bank supervision team will focus on: credit underwriting, particularly risk layering, fair lending implications and new products; stress testing for oil and gas-related portfolios; strategic risk; operational risk, including third-party relationships and the Cybersecurity Assessment Tool; AML compliance; change management in consumer compliance; interest rate risk modeling; ALLL; and horizontal risk assessments.

For larger banks, the agency will look at responsiveness to matters requiring attention; ongoing operational risk management; avoiding AML compliance that limits financial inclusion; change management in consumer compliance; and complex credit underwriting, among others.