A report released by the Office of the Comptroller of the Currency (OCC) recently maintained that credit, operational, compliance and interest rate risks are key themes for the federal banking system.
In its Semiannual Risk Perspective for Fall 2018, the OCC revealed credit quality remains strong, operational risk is elevated as banks respond to an evolving and increasingly complex operating environment, and compliance risk is elevated as banks manage money laundering risks and comply with amended consumer protection requirements. The report also revealed that rising interest rates and increased competition for deposits may result in changes in funding mix or costs.
Information contained within the analysis addressed five main areas, officials said, the operating environment, bank performance, special topics in emerging risk, trends in critical risks, and supervisory actions, focusing on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners and the public.
The OCC charters, regulates, and supervises national banks and federal savings associations. It also licenses, monitors and oversees the federal branches and agencies of foreign banks.
The OCC supervises banks to ensure they operate safely and soundly, provide fair access to financial services, treat customers fairly and comply with applicable laws and regulations.