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The Office of the Comptroller of the Currency (OCC) was created to charter and supervise national banks, which would serve as the instruments of a uniform, secure national currency and help stabilize and support the national economy.
Since the creation of the federal banking system in 1863, sweeping changes in laws, regulations, and banking practices have resulted in the OCC’s dynamic approach to bank supervision that continually evolves to safeguard trust in banking. Throughout the agency’s history, a focus on developing and maintaining trust between financial providers, their constituents, and their regulators has emerged as a hallmark of bank supervision.
Technological changes have also had an impact on bank supervision. From writing in leather-bound ledgers and counting coins in the early days to the complex, integrated supervisory oversight of technology partnerships and operations today, OCC examiners have kept a steady focus on making sure their supervised institutions operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.
See some of the tools of the trade, learn about shifts in responsibilities, and read tales from the frontlines of bank supervision below.
Hugh McCulloch, the first Comptroller of the Currency, stressed the importance of skilled bank examiners and helped establish the federal banking system despite his initial opposition to the National Currency Act.
The OCC shifted from currency management to focusing on bank examination and regulation, crucial in maintaining national bank stability, especially during the Great Depression.
During World War II, bank examiners managed increased responsibilities, while post-war stability and technological advancements eased their work and fostered strong teamwork.
Banking advancements and new regulations in the 1960s and 1970s expanded bank supervision, increasing examiner responsibilities and leading to risk-focused strategies.
In the 1980s the OCC increased off-site bank monitoring. But fewer examiners and a rise in risky real estate lending, bank failures surged, leading to legislative reforms and a reevaluation of supervision methods.
In the 1990s the OCC shifted to a risk-based supervision system, tailoring oversight to each bank’s specific risks and adapting to changing market conditions.
After 9/11, reforms to the federal banking system aimed to address international exposures and compliance responsibilities. Yet the financial crisis of 2007–2008, fueled by subprime lending and complex financial instruments, led to severe economic instability and prompted President Barack Obama to sign the Dodd–Frank Act to enhance regulatory oversight and consumer protection.
As smartphones and fintechs revolutionized banking, examiners adapted to new challenges by promoting responsible innovation, enhancing their focus on information technology, and evolving their skills to address emerging risks such as crypto-assets and climate-related issues.
