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  • OCC updates commercial real estate lending booklet of Comptroller’s Handbook

    On March 29, the OCC issued Bulletin 2022-7 version 2.0 of the “Commercial Real Estate Lending” booklet of the Comptroller's Handbook. The booklet rescinds version 1.1 of the booklet of the same title issued in January 2017 and Bulletin 2013-19, “Commercial Real Estate Lending: Comptroller's Handbook Revisions and Rescissions.” Among other things, the revised booklet: (i) indicates changes to laws and regulations since the booklet was last updated; (ii) reflects the agency’s issuances published and rescinded since the booklet was last updated; (iii) provides clarifying edits regarding supervisory guidance, sound risk management practices, and legal language; and (vi) resends certain content for clarifying purposes.

    Bank Regulatory Federal Issues Agency Rule-Making & Guidance OCC Commercial Lending Comptroller's Handbook

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  • OCC updates Large Bank Supervision booklet

    On March 8, the OCC updated the Large Bank Supervision booklet of the Comptroller’s Handbook, which is used by OCC examiners during the examination and supervision of midsize and large national banks and federal savings associations, foreign-owned U.S. branches and agencies, and international operations of midsize and large banks. The updated booklet rescinds the 2019 version and includes a revised core assessment, “which will be effective for core assessment summaries using financial information as of March 31, 2022.” Among other things, the revised booklet (i) clarifies expectations related to the preparation and documentation of a bank’s core assessment summary; (ii) combines core assessment and risk assessment system information into the “Core Assessment” section; (iii) updates core assessment factors and subfactors; (iv) clarifies the difference between an annual core assessment summary and quarterly supervision updates; (v) updates supervisory activity types to include “focused review,” consistent with OCC current practices; and (vi) includes additional consistency and clarity updates.

    Bank Regulatory Federal Issues OCC Comptroller's Handbook Of Interest to Non-US Persons Examination Supervision

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  • OCC updates OREO booklet

    On December 20, the OCC issued Bulletin 2021-65 announcing the revision of the Other Real Estate Owned (OREO) booklet of the Comptroller’s Handbook, which applies to the OCC’s supervision of community banks. The updated booklet replaces the booklet of the same title issued in September 2020, and rescinded OCC Bulletin 2020-79, “Other Real Estate Owned: Updated Comptroller’s Handbook Booklet.” (Covered by InfoBytes here.) Among other clarifying changes, the updated booklet: (i) defines physical possession as it pertains to OREO properties; and (ii) updates ownership obligations and actions as they pertain to the Fair Housing Act.

    Bank Regulatory Federal Issues OCC Comptroller's Handbook Real Estate OREO Fair Housing Act

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  • OCC updates Retail Lending booklet

    Agency Rule-Making & Guidance

    On October 28, the OCC issued Bulletin 2021-52 announcing the issuance of version 2.0 of the “Retail Lending” booklet of the Comptroller’s Handbook. The booklet rescinds OCC Bulletin 2017-15, “Retail Lending: New Comptroller's Handbook Booklet” (covered by InfoBytes here) and the “Retail Lending” booklet of the Comptroller’s Handbook, version 1.1. Among other things, the revised booklet: (i) reflects changes to laws and regulations since the last update of this booklet; (ii) reflects OCC issuances published and rescinded since the last update of this booklet; (iii) clarifies supervisory guidance, sound risk management practices, and legal language; and (iv) alters some content for clarity purposes.

    Agency Rule-Making & Guidance OCC Comptroller's Handbook Bank Regulatory

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  • OCC updates Payment Systems booklet

    Agency Rule-Making & Guidance

    On October 21, the OCC issued Bulletin 2021-49 announcing the revision of the Payment Systems booklet of the Comptroller’s Handbook. The booklet rescinds the Payment Systems and Funds Transfer Activities booklet of the Comptroller’s Handbook (March 1990); the Office of Thrift Supervision Examination Handbook section 580, the Payments Systems Risk (January 1994); banking Circular 235, International Payments Systems Risks (May 10, 1989); and OCC Bulletin 1996-48, Stored Value Card Systems: Information for Bankers and Examiners (September 3, 1996). Among other things, the revised booklet: (i) provides information on payment systems, types of payments, risks associated with payment systems, and associated risk management practices; (ii) highlights the requirements of 12 CFR 7.1026 on payment systems memberships; and (iii) includes expanded examination procedures and “supplemental procedures for deeper review of certain payment activities.”

    Agency Rule-Making & Guidance OCC Comptroller's Handbook Bank Regulatory Payments Payment Systems

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  • OCC updates earnings and regulatory Comptroller’s Handbook

    Agency Rule-Making & Guidance

    On September 22, the OCC issued Bulletin 2021-44 announcing versions 1.0 of the “Earnings” and “Regulatory Reporting” booklets of the Comptroller’s Handbook. The new booklets apply to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations, as well as the OCC’s supervision of community banks. The revised “Earnings” booklet rescinds the “Analytical Review of Income and Expense” booklet issued in March 1990 (with examination procedures issued in March 1998). The revised “Regulatory Reporting” booklet rescinds the “Review of Regulatory Reports” booklet, which was also issued in March 1990. The “Earnings” booklet, among other things, “supplements the earnings core assessments and provides examiners with expanded procedures to use when reviewing earnings for a specific line of business or the bank as a whole.” The “Regulatory Reporting” booklet, among other things: (i) pertains to call reports and similar financial reports but not, for instance, annual reports or those concerning nonfinancial activities; (ii) highlights sound risk management principles regarding regulatory reporting; and (iii) provides examiners procedures regarding assessing activities for a bank’s regulatory reporting. Although the rating system for federal branches does not include an earnings rating, examiners perform an earnings review, tailored to the activities of the federal branch, and, as such, the “Earnings” booklet is helpful guidance.

    Agency Rule-Making & Guidance OCC Examination Comptroller's Handbook Bank Regulatory

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  • OCC releases new Problem Bank Supervision booklet

    Agency Rule-Making & Guidance

    On September 13, the OCC issued a new Problem Bank Supervision booklet of the Comptroller's Handbook to be used by examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations. The booklet—the central reference for the OCC's problem bank supervision policy—describes the OCC’s approach to timely identification and rehabilitation of problem banks and replaces previously-issued guidance. Among other things, the booklet (i) discusses red flags that can indicate a potential problem bank; (ii) details the supervisory and enforcement approaches the OCC can take to rehabilitate a problem bank; (iii) provides a comprehensive discussion of the agency’s authority under 12 CFR 6, “Prompt Corrective Action”; and (iv) explains the process for problem bank resolution, including receivership. The booklet complements other Comptroller’s Handbook booklets as well as topical OCC and interagency issuances. The OCC also notes that the booklet “should be supplemented with appropriate examiner consultation with the supervisory office, subject matter experts, Licensing Division staff, and OCC legal counsel.”

    Agency Rule-Making & Guidance OCC Comptroller's Handbook Examination Supervision Bank Regulatory

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  • OCC releases new Model Risk Management booklet

    Agency Rule-Making & Guidance

    On August 18, the OCC issued a new Model Risk Management booklet as part of the Comptroller’s Handbook’s safety and soundness series. The booklet is used by OCC examiners when examining and supervising national banks, federal savings associations, and federal branches and agencies of foreign banking organizations. Among other things, the new booklet (i) outlines model risk management concepts and general principles; (ii) “informs and educates examiners about sound model risk management practices that should be assessed during an examination”; and (iii) “provides information needed to plan and coordinate examinations on model risk management, identify deficient practices, and conduct appropriate follow-up.” The booklet aligns with principals laid out in OCC Bulletin 2011-12 “Sound Practices for Model Risk Management: Supervisory Guidance on Model Risk Management.”

    Agency Rule-Making & Guidance OCC Risk Management Comptroller's Handbook Examination Supervision Bank Regulatory

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  • OCC updates Liquidity booklet

    Agency Rule-Making & Guidance

    On August 16, the OCC issued Bulletin 2021-38 announcing the updated version of the Liquidity booklet of the Comptroller’s Handbook. The booklet replaces the 2012 version and provides information and examination procedures on liquidity coverage ratio and net stable funding ratio requirements. Among other things, the revised booklet: (i) discusses risks associated with liquidity; (ii) reflects changes in regulations and relevant OCC issuances since 2012; and (iii) clarifies edits on supervisory guidance, sound risk management practices, and legal language.

    Agency Rule-Making & Guidance OCC Comptroller's Handbook Liquidity Examination Supervision Bank Regulatory

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  • OCC updates Credit Card Lending booklet

    Agency Rule-Making & Guidance

    On April 29, the OCC issued Bulletin 2021-22 announcing the revision of the Credit Card Lending booklet of the Comptroller’s Handbook. The booklet rescinds OCC Bulletin 2015-14 and replaces version 1.2 of the “Credit Card Lending” booklet that was issued on January 6, 2017. Among other things, the revised booklet (i) discusses the adoption of current expected credit loss methodology and the increased use of such modeling in credit card origination and risk management; (ii) reflects changes to OCC issuances; (iii) includes refining edits regarding supervisory guidance, sound risk management practices, and legal language; and (iv) includes revisions for clarity.

    Agency Rule-Making & Guidance OCC Comptroller's Handbook Credit Cards CECL Bank Regulatory

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