The Office of the Comptroller of the Currency is proposing to rescind its updated recovery planning guidelines for larger banks, saying the move is part of a Trump administration effort to eliminate unnecessary regulatory burdens.
The OCC last year issued a final rule to expand its enforceable recovery planning guidelines to national banks, federal savings associations and federal branches with at least $100 billion in assets, down from the previous limit of $250 billion. The rule also created a new provision requiring covered banks to test their overall recovery plans to ensure that those plans will be effective during periods of severe stress.
In a statement, OCC said risk management is a dynamic process that involves real-time responses to the facts and circumstances of a stress event, and that banks should routinely assess and adjust their operations to adapt to evolving risk factors and conditions. “Relieving covered banks of the obligation to engage in prescriptive recovery planning activities is consistent with the OCC’s ongoing effort to identify and eliminate unnecessary regulatory burden,” it said.
OCC is seeking comment on the proposed rescission, with comments due 30 days after publication in the Federal Register. The agency has also released a bulletin on the proposal.
