ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Commercial Lending

As Growth Continues, OCC Sees Credit, Liquidity Risk Elevated

May 20, 2019
Reading Time: 1 min read

Underlying credit and liquidity risks associated with the current point in the economic cycle should be on bankers’ radar screens, the OCC advised today in its Semiannual Risk Perspective report. While the economy notched robust economic figures in 2018, the agency warned that imbalances like inflation can emerge when the economy operates above its full potential. “Successive years of growth, incremental easing in underwriting, risk layering, and building credit concentrations result in accumulated risk in loan portfolios,” it said.

While the OCC acknowledged that the health of the financial system remains strong—citing sound asset quality, capital reaching near-historic highs and improving earnings as positive indicators—credit risk remains a top concern. The report noted that banks and nonbanks have continued the recent trend of easing underwriting standards as they compete for quality loans. The report also observed that commercial real estate loans grew at 7.8% at community banks in 2018, compared to 1.4% industry-wide—although the number of OCC-supervised banks with CRE exposure over 300% of capital or construction and development loans of over 100% of capital declined.

While deposits have risen, the OCC cautioned that an uncertain rate environment and technological advances in moving funds “could result in markedly different depositor behavior than in previous economic cycles.” The OCC also noted that strategic risk—driven by the need for banks to invest in innovative technologies, transition from legacy systems and achieve greater efficiencies—is elevated. Consistent with previous reports, cyber threats result in elevated operational risk, and Bank Secrecy Act compliance risk remains high.

ADVERTISEMENT
Tags: Bank Secrecy ActCommercial real estateCore processingCybersecurityFintechRisk management
ShareTweetPin

Related Posts

In 90th anniversary year, Stonier graduates 182

In 90th anniversary year, Stonier graduates 182

Newsbytes
June 12, 2025

ABA Chair-Elect Cathy Owen of State Holding Company in Little Rock, Arkansas, delivered the keynote address during the graduation ceremony, which saw students receive Stonier diplomas and Wharton leadership certificates.

Fifth Circuit grants ABA mandamus, vacates transfer order for second time

ABA, CBA support maintaining confidentiality of CFPB nonbank risk determinations

Compliance and Risk
June 12, 2025

The American Bankers Association, joined by the Consumer Bankers Association, expressed support for the Consumer Financial Protection Bureau’s proposal to maintain the confidentiality of decisions to exercise the agency’s supervisory authority over a nonbank entity that may pose...

Survey finds high customer satisfaction with banking apps

Survey finds high customer satisfaction with banking apps

Newsbytes
June 12, 2025

Overall satisfaction with U.S. national banking apps is 669 on a 1,000-point scale, up 18 points from 2024. At the same time, the gap in satisfaction between best-performing and lowest-performing apps and bank websites shrunk to its lowest...

Nine highlights from nine decades of Stonier alumni

Nine highlights from nine decades of Stonier alumni

Community Banking
June 12, 2025

Over 90 years, more than 26,000 graduates of the ABA Stonier Graduate School of Banking have brought leadership and vision to their banks and to the industry. To commemorate Stonier’s 90th anniversary, we are highlighting nine remarkable Stonier...

ABA experts see reasons for optimism amid economic, regulatory uncertainty

ABA experts see reasons for optimism amid economic, regulatory uncertainty

Compliance and Risk
June 11, 2025

The Trump administration has rolled back a broad range of banking guidance and regulatory proposals made in the last few years, and while bankers are used to regulatory whiplash when administrations change, it is possible some of changes...

Consumers expect short-term inflation, bearish on home prices and spending

Consumer price inflation 2.4% in May

Economy
June 11, 2025

The Consumer Price Index increased 0.1% in May on a seasonally adjusted annual basis, after rising  0.2% in April, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index increased 2.4%.

NEWSBYTES

In 90th anniversary year, Stonier graduates 182

June 12, 2025

ABA, CBA support maintaining confidentiality of CFPB nonbank risk determinations

June 12, 2025

Survey finds high customer satisfaction with banking apps

June 12, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.