OCC Updates Accounting Advisory and Liquidity Booklets for Banks
The Office of the Comptroller of the Currency (OCC) updated the Bank Accounting Advisory Series, which reflects the accounting standards updates issued by the Financial Accounting Standards Board, addresses a variety of accounting topics, and promotes consistent application of accounting standards and regulatory reporting among OCC-supervised banks. Also updated was the “Liquidity” booklet (Version 1.1) of the Comptroller’s Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.
The Liquidity booklet provides examiners with guidance on assessing the quantity of a bank's liquidity risk and quality of liquidity risk management. The updated booklet discusses risks associated with liquidity, includes information and examination procedures about liquidity coverage ratio, and added section on the net stable funding ratio requirements. The updated booklet also includes clarifying edits regarding supervisory guidance, sound risk management practices, or legal language and revises certain content for general clarity. The Version 1.1 of this updated booklet replaces Version 1.0 of the “Liquidity” booklet issued in June 2012. Additionally, OCC Bulletin 2012-17, “Liquidity: Comptroller's Handbook Revisions and Rescissions” has been rescinded.
The sophistication of the liquidity management process of a bank depends on its business activities and appetite for risk as well as on the overall level of liquidity risk. A well-managed bank, regardless of size and complexity, identifies, measures, monitors, and controls its exposure to liquidity risk in a timely and comprehensive manner. This booklet provides examiners with supplemental procedures for further analyzing the quantity of liquidity risk and quality of liquidity risk management. The expanded procedures in this booklet are for use when review extends beyond the core assessment in the “Community Bank Supervision,” “Federal Branches and Agencies Supervision,” and “Large Bank Supervision” booklets of the Comptroller’s Handbook.
Related Links
- News Release on Accounting Advisory Series
- Bulletin on Accounting Advisory Series
- Bulletin on Liquidity Booklet
- Liquidity Booklet
Keywords: Americas, US, Banking, Liquidity Risk, Comptroller Handbook, Accounting, Reporting, Banking Supervision, Community Banks, NSFR, LCR, CECL, Accounting Standards Update, FASB
Featured Experts
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
FDIC Launches Tech Sprint to Measure Operational Resilience of BanksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.