On October 21, 2015, Comptroller of the Currency, Thomas J. Curry, in a speech before the Exchequer Club, discussed the increasing credit risk in the federal banking system. Comptroller Curry believes the financial system is currently at a point in the market cycle where loan underwriting standards are weakening and credit risk is becoming an increasing point of focus. He stated, “...we should be asking whether banks have the appropriate risk management processes and structures in place to measure, monitor and control the increased credit risk they are taking on.” In his remarks, the Comptroller mentioned leveraged lending and auto lending as two specific products of concern.

The Office of the Comptroller of the Currency press release and Comptroller’s remarks are available at: http://www.occ.gov/news-issuances/news-releases/2015/nr-occ-2015-141.html and http://www.occ.gov/newsissuances/speeches/2015/pub-speech-2015-141.pdf.