The Office of the Comptroller of the Currency ("OCC") outlined an operating plan for bank supervision in fiscal year 2017. The plan serves as a foundation for policy initiatives and guides the development of supervisory strategies for banks.
The OCC stated that the plan establishes priorities for the National Risk Committee, Large Bank Supervision, Midsize and Community Bank Supervision, Compliance and Community Affairs, the supervision of technology service providers, and the Office of the Chief National Bank Examiner. Supervisory strategies for fiscal year 2017 will concentrate on the following areas:
- commercial and retail loan underwriting;
- business model sustainability and viability;
- operational resiliency;
- Bank Secrecy Act / anti-money laundering compliance management; and
- changes in management that reflect new regulatory requirements.
Commentary / Steven Lofchie
The OCC's focus on business model sustainability seems especially interesting in light of recent reductions in the number of smaller banks. Might we see regulatory pressures force struggling banks to sell themselves off or shut down?
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