December 8, 2022

OCC: New Report Highlights Key Risks Facing Federal Banking System

The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Fall 2022.

Economic growth slowed sharply in 2022, while high employment rates supported consumer spending and overall bank performance. Banks, in aggregate, remain well capitalized and with ample liquidity and sound credit quality, although macroeconomic headwinds are a concern. The OCC highlighted interest rate, operational, compliance and credit risks, among the key risk themes in the report.

Highlights from the report include:

The report also highlights the OCC’s initiative on climate-related financial risks to the federal banking system and the OCC’s careful and cautious approach to crypto assets.

The report covers risks facing national banks, federal savings associations, and federal branches and agencies based on data as of June 30, 2022. The report presents information in five main areas: the operating environment, bank performance, a special section on emerging risks relating to crypo-assets, trends in key risks, and supervisory actions. The report focuses on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public.

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This post was originally published here.