OCC Flags Supervision Priorities for 2018

The OCC today released its bank supervision operating plan for fiscal year 2018, 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 cybersecurity and operational resiliency, commercial and retail credit underwriting and concentration risk management, business model sustainability and strategy changes, Bank Secrecy Act compliance management and change management due to new regulations.

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; market risk, including interest rate changes; ALLL; horizontal risk analysis; and asset management in the context of the new fiduciary rule.

For larger banks, the agency will look at responsiveness to matters requiring attention; horizontal risk analysis; governance and operational risk, including cybersecurity and oversight of new products; credit risk, ALLL and market risk.