The OCC Committee on Bank Supervision released the bank supervision operating plan for fiscal year 2020. The 2020 plan outlines the supervisory priorities of OCC and aligns with the Strategic Plan of OCC for fiscal years 2019–2023 and with the priorities of the National Risk Committee. The plan provides the foundation for policy initiatives and supervisory strategies as applied to national banks, federal savings associations, federal branches, federal agencies, and technology service providers. Additionally, OCC plans to provide periodic updates about supervisory priorities through the Semiannual Risk Perspective in the Fall and Spring.
OCC will adjust supervisory strategies, as appropriate, during the fiscal year in response to emerging risks and supervisory priorities. For fiscal year 2020, in addition to the baseline supervision to assign ratings, the development of supervisory strategies will focus on the following risk areas:
- Cyber-security and operational resilience, with emphasis on threat vulnerability and detection, access controls and data management, and management of third-party connections
- Preparedness for the current expected credit losses, or CECL, accounting standard, including bank implementation plans and use of third-party vendors to assist in methodology, modeling, and management information systems development
- Preparation for the potential phase-out of the London Interbank Offering Rate, or LIBOR, as a reference rate after 2021, including impact assessments, correlated risk assessments, vendor management, and change management related to the implementation of an alternative index for pricing loans, deposits, other products and services, and operational and compliance risks
- Technological innovation and implementation, including use of cloud computing, artificial intelligence, digitalization in risk management processes, new products and services, and strategic plans
- Commercial and retail credit underwriting practices and oversight and control functions, , with a focus on evaluating credit risk appetites, risk layering, and portfolio risk exposure
- Impact of changing interest rate outlooks on bank activities and risk exposures, including deposit costs, funding migration, asset valuations, borrower debt service capacity, and housing affordability
Keywords: Americas, US, Banking, CECL, LIBOR, Banking Supervision, Cyber Risk, Credit Risk, Fintech, Operating Plan, OCC
A well-recognized researcher in the field; offers many years of experience in the real estate ﬁnance industry, and leads research efforts in expanding credit risk analytics to commercial real estate.
Leading economist; recognized authority and commentator on personal finance and credit, U.S. housing, economic trends and policy implications; innovator in econometric and credit modeling techniques.
Previous ArticleAMF Publishes Statement of Key Planned Initiatives for 2019-2020
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.