The Office of the Comptroller of the Currency today released its bank supervision operating plan for fiscal year 2025, which lists the agency’s supervision priorities and objectives. New this year is language clarifying that the OCC’s “risk-based supervision approach” will focus on evaluating risk, identifying material and emerging concerns, and requiring banks to take timely corrective action before deficiencies compromise their safety and soundness.
“The OCC’s risk-based supervision approach requires examiners to determine how existing or emerging issues for a bank, its related organizations, or the banking industry as a whole affect the nature and extent of risks in that bank,” the document states.
Many supervisory priorities for the OCC in FY25 are the same as the previous fiscal year, including a focus on the areas of credit, asset and liability management, cybersecurity and bank operations. New this year is more detailed guidance for examiners in the areas of capital and third-party risk. In terms of the latter, the document instructs examiners to “determine when third-party and other subcontracted relationships, particularly those with financial technology companies that provide consumers and businesses access to banking products and services, represent significant operational, compliance, strategic, financial, reputation or other risks.”
