The U.S. Office of the Comptroller of the Currency (OCC) is looking for feedback on a proposal to rescind its recovery planning guidelines for certain large insured national banks, federal savings associations, and federal branches of banks.
Specifically, this proposal would rescind recovery planning guidelines that went into effect Jan. 1, 2025. The proposal applied to banks with at least $100 billion in assets.
In rescinding the recovery planning guidelines, the OCC reasons that it expects the institutions it supervises to be well managed and have appropriate risk management processes in place to prepare for and respond to stress.
Occ officials explained that risk management is a dynamic process that involves real-time responses to the facts and circumstances of a stress event or periods of stress.
They contend that banks should routinely assess and adjust their operations to adapt to evolving risk factors and conditions.
The OCC points out that 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.
The OCC will accept public comments on the proposal to rescind the guidelines for 30 days after the date that the notice is published in the Federal Register.