On December 16, 2015, the OCC issued its Semiannual Risk Perspective for Fall 2015 which highlights risks facing national banks and federal savings associations, based on data through June 30, 2015. According to the report, strategic, underwriting, cyber security, compliance and interest rate risks are the top supervisory concerns of the OCC. Generally, the OCC reports that risks related to underwriting and cyber security are increasing, while strategic, compliance, and interest rate risk remain constant. Specifically, the report notes that due to a low interest rate environment, many federal banks have faced obstacles to revenue growth. The report also notes that banks have been responding to the competitive environment by easing their credit underwriting standards. In addition, cyber security threats and resiliency planning have been of the utmost concern for the industry and will remain a key topic of focus going forward.
The OCC’s Semiannual Risk Perspective for Fall 2015 is available at: http://www.occ.gov/publications/publications-bytype/other-publications-reports/semiannual-risk-perspective/semiannual-risk-perspective-fall-2015.pdf.