On February 12, 2016, the US Office of the Comptroller of the Currency issued two revised booklets of the Comptroller’s Handbook: the “Country Risk Management” booklet and the “Installment Lending” booklet. Each revised booklet updates and replaces the previous versions of the respective booklets. The “Installment Lending” booklet provides updated guidance to examiners regarding the administration of installment lending practices and the controls and processes necessary to manage the risks associated with those practices as well as updated guidance for assessing the quantity of risk associated with installment lending activities.
The “Country Risk Management” booklet provides updated guidance to examiners regarding country risk management, based on lessons learned from the financial crisis of 2008 as well as the European banking and debt crises. The booklet also updates descriptions of the risks associated with international activities and contains a more detailed discussion of the effects of country risk, cross-border risk and sovereign risk on the OCC’s 8 risk categories (credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation).
The full text of the “Installment Lending” booklet is available at: http://www.occ.gov/publications/publications-bytype/comptrollers-handbook/pub-ch-a-il.pdf.
The full text of the “Country Risk Management” booklet is available at: http://www.occ.gov/publications/publicationsby-type/comptrollers-handbook/pub-ch-crm.pdf.