OCC

OCC is hosting a Mutual Savings Association Advisory Committee meeting. The OCC announced that it is hosting a public meeting of the Mutual Savings Association Advisory Committee (MSAAC) on Tuesday, May 3, 2016, beginning at 8:30 a.m. EST. The meeting will be held at the OCC office in Washington, DC. The purpose of the MSAAC meeting is to advise the OCC on regulatory changes or other steps that the OCC could take to guarantee the sustained health and viability of mutual savings associations and other issues of concern to mutual savings associations. (4/14/2016) OCC press release.

New Deputy Comptroller for Compliance Risk is announced. The OCC has announced that it has selected Donna Murphy for Deputy Comptroller for Compliance Risk. In this role, which is effective May 1st, Ms. Murphy will oversee development of policy and examination procedures relating to consumer, Bank Secrecy Act and anti-money laundering, and Community Reinvestment Act issues. In addition, she will serve as a key advisor to the Committee on Bank Supervision and to the Comptroller of the Currency on compliance and CRA matters. (4/13/2016) OCC press release.

Risk Appetite Statement is released. The OCC released its Risk Appetite Statement, which sets boundaries of acceptable levels of risk in main areas of agency operations. Agency management and employees will use the statement to evaluate their decisions and actions as they oversee national banks and federal savings associations as well as the execution of agency management functions including HR, procurement, and information technology. OCC press release.

OCC will be hosting a Texas Credit Risk workshop and is offering the first Operational Risk workshop. The OCC will be hosting two workshops in Corpus Christi, Texas, at the Omni Corpus Christi Hotel, May 17-18, including its first workshop on operational risk. The Credit Risk workshop on May 17th will be focusing on credit risk within the loan portfolio, such as identifying trends and recognizing problems, and will also cover the roles of the board and management, how to stay informed of changes in credit risk, and how to effect change. The Operational Risk workshop on May 18th will be focusing on the main components of operational risk (people, processes and systems) and will also cover governance, third-party risk, vendor management, and cybersecurity. This is the first of six Operational Risk workshops that are scheduled for 2016. (4/11/2016) OCC press release.

Comptroller discusses innovation at American Banker Retail Banking Conference. Comptroller of the Currency Thomas J. Curry discussed innovation and its influence on retail banking during an appearance at the American Banker Retail Banking Conference. (4/7/2016) OCC press release.

FDIC

De novo time period extension is withdrawn; supplemental guidance on business planning is issued. The FDIC has withdrawn its Financial Institution Letter 50-2009, Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions, which extended the de novo period for newly organized, state nonmember institutions from three to seven years for examinations, capital maintenance, and other requirements. It had been issued against the environment of an elevated number of newly insured institutions that had either failed or had been identified as problem banks during the financial crisis. Since the issuance of the guidance, the FDIC has adopted regulations and guidance that apply to all supervised institutions to reinforce their resiliency and risk-management practices. In addition, the FDIC has issued a supplement to its November 2014 guidance related to the Statement of Policy on Applications for Deposit Insurance. The guidance is in a Q&A format to help applicants who are developing proposals for deposit insurance. The supplemental questions and answers focus on business plan development. (4/6/2016) FDIC press release. 

Federal Reserve

Federal Reserve applies new procedures for examiners to conduct off-site loan reviews for certain banks. The Federal Reserve applied new procedures for examiners to conduct off-site loan reviews for community and small regional banks. (4/19/2016) Federal Reserve press release.

Federal Reserve proposes technical amendments to rule requiring global systemically important bank holding companies to hold additional amounts of risk-based capital. The Federal Reserve has proposed technical amendments to its rule requiring global systemically important bank holding companies (GSIBs) to hold additional amounts of risk-based capital. The proposal would not materially change the original rule that was finalized by the Federal Reserve in 2015, which established criteria for identifying a firm as a GSIB and the methodology that a GSIB needs to use to decide its risk-based capital surcharge, which corresponds to the systemic risk of that firm. The proposed amendments explain that GSIBs must continue to calculate their surcharges using year-end data, while their related surcharge data will be reported on a quarterly basis. The proposal further clarifies that these firms must compute their surcharge scores using billions of dollars. The amendments also provide additional information on how GSIBs should calculate their short-term wholesale funding scores, which help to determine their surcharges, during the rule’s transition period. Comments will be accepted by May 13th. (4/7/2016) Federal Reserve Board press release.