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Following on the FDIC's recent issuance of updated guidelines for appeals of material supervisory determination, the OCC is now proposing to replace the existing guidance for handling appeals of material supervisory determinations at institutions under its jurisdiction and to create a board to decide bank appeals. The deadline for comments on the proposal is April 20, 2026.
Under the proposed process, an institution could appeal a material supervisory determination to the Deputy Comptroller of the Division that decided the issue being appealed or the institution could appeal directly to the new Appeals Board. An institution disagreeing with a determination by the Deputy Comptroller could also seek review by the new Appeals Board.
Although the OCC is considering other options, as proposed, the Appeals Board would have three members, the Chief National Bank Examiner and two individuals with relevant banking, regulatory, legal or supervisory experience who would serve one-year non-renewable terms. Those individuals could not be current OCC employees or previous appointees.
"The proposed changes reflect the OCC's experience administering the bank appeals process and are intended to enhance the independence and efficiency of the appeals function," the OCC said.
The OCC said it is concerned that few appeals have been filed with the agency's Ombudsman using the current appeals process. Officials went on to say that there may be a perception among institutions that the current appeals process is not fair. In addition, institutions may be afraid that an appeal might hurt their relationship with the OCC, they added. The agency said that it expects that the proposed review process would increase the number of appeals.
The proposal would amend 12 CFR Part 4 to add a Subpart I governing bank appeals of material supervisory determinations.
The proposed rule would
- Replace the regulator's existing guidance for handling bank appeals.
- Establish an Appeals Board to decide bank appeals.
- Clarify that a de novo standard of review would be used for deciding appeals, with no deference shown to either party.
- Establish standards for when stays of material supervisory determinations would be issued pending an appeal.
- Strengthen the agency's ombudsman function by having the ombudsman serve as an impartial liaison between the appellant and the Deputy Comptroller or the Appeals Board.
- Establish standards for expedited appeals when a material supervisory determination relates to or causes an institution to be critically undercapitalized.
- Prohibit retaliation against a bank or person for filing an appeal and prohibit discouraging a bank or person from filing an appeal or otherwise communicating concerns to the OCC.
The OCC is seeking comments on all aspects of the proposal and has asked for responses to questions on twenty specific topics, including how the process should work if a member of the Appeals Board is recused and the remaining members cannot come to a joint decision.
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