OCC
OCCAlso called office of the Comptroller of the Currency
The Office of the Comptroller of the Currency is an independent bureau of the US Treasury that charters, regulates and supervises national banks, federal savings associations and federal branches and agencies of foreign banks. It examines these institutions for safety and soundness, fair access to financial services and compliance with law.
How it works
The OCC grants national bank charters, approves mergers and runs examinations. Large banks have resident examiner teams, while smaller banks get periodic on-site reviews. Examiners assess capital, asset quality, management, earnings, liquidity and sensitivity to market risk, and test Bank Secrecy Act compliance. Findings lead to matters requiring attention or formal enforcement action.
The OCC supervised more than 1,000 institutions holding about $16 trillion of assets as of September 2024. It is funded mainly by assessments on the banks it supervises rather than by Congress. Its consent orders, civil money penalties and interpretive letters set expectations for compliance programmes, model risk and third-party risk across the US banking sector.
The rules
Created the Office of the Comptroller of the Currency and the national bank charter system.
National banksAbolished the Office of Thrift Supervision and transferred supervision of federal savings associations to the OCC from July 2011.
Federal savings associations and the OCCJoint guidance from the OCC and other agencies that superseded SR 11-7 and SR 21-8 on model risk management.
Banks supervised by the Federal Reserve, OCC and FDICCommon questions
What is the difference between the OCC and the Federal Reserve?
The OCC supervises national banks and federal savings associations. The Federal Reserve supervises bank holding companies and state member banks, and sets monetary policy. A national bank inside a holding company answers to both.
Does the OCC supervise state banks?
No. State-chartered banks are supervised by their state regulator together with the Federal Reserve, for member banks, or the FDIC, for non-member banks. The OCC covers federally chartered institutions.
What enforcement powers does the OCC have?
The OCC can issue cease and desist orders, consent orders and formal agreements, impose civil money penalties, remove bank officials and, in serious cases, revoke a charter or appoint a receiver through the FDIC.
