OCC reminds banks of its exclusive visitorial authority

Federal Issues Agency Rule-Making & Guidance OCC Examination SBA Small Business Lending Covid-19

On April 24, the OCC issued Bulletin 2020-43 to “remind[] banks that it has exclusive visitorial authority over them.” The bulletin states that it is important for banks to quickly provide the Small Business Administration’s Paycheck Protection Program loans to small businesses. As such, state and local officials cannot examine banks’ books and records without prior authorization such that they attempt to exercise visitorial authority. Moreover, banks are not required to comply with such requests, and are further encouraged to contact their OCC examiner regarding any state and local requests. State and local officials are likewise encouraged to contact the OCC with any information or questions.