Uncertainty around how bank deposits will reach to a rising interest rate environment was among several key risk themes identified by the OCC in its Semiannual Risk Perspective report released today.

Signaling a significant shift in the OCC’s approach to small-dollar lending, the agency today issued a bulletin encouraging banks to make “responsible short-term, small-dollar installment loans, typically two to 12 months in duration with equal amortizing payments” to help meet the credit needs of their customers. 

Only about one in 10 banks can be considered at “high” credit risk, according to the FDIC’s most recent credit survey -- down from 42 percent in 2010, when banks were working through a backlog of bad loans.

An ABA Banking Journal special report

Cyber, third parties and regulatory changes continue to top the list.

In a letter to the FDIC today, ABA called on the agency to rescind its 2013 guidance on direct deposit advance services.

Credit risk in large, syndicated loans of more than $20 million dipped slightly but remains high for this phase of an economic expansion, according to the interagency Shared National Credits Review released today.

The OCC is focusing on credit risk, compliance risk and strategic risk as its top supervisory priorities at community and midsize banks, according to the agency’s Semiannual Risk Perspective report released today.

With interest rates on the rise and new leadership in D.C., risk conditions on the ground are considerably different today from one year ago.

Bankers continued tightening credit for commercial real estate and certain consumer loans in the first quarter of 2017, while easing slightly on commercial and industrial lending, according to the Federal Reserve’s latest senior loan officer survey released today.