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OCC Bulletin 2012-15
May 17, 2012
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Chief Executive Officers and Compliance Officers of All National Banks and Federal Savings Associations, Department and Division Heads, and All Examining Personnel
The Office of the Comptroller of the Currency (OCC) is rescinding the Office of Thrift Supervision (OTS) documents listed in Attachment A as part of its ongoing implementation of title III of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010.
OCC 2011-47, "OTS Integration: Supervisory Policy Integration Process"
As explained in OCC 2011-47, the OCC is committed to evaluating former OTS guidance, addressing common supervisory issues consistently, and accommodating regulatory and statutory differences appropriately. The OCC's goal is to produce a consistent supervisory approach and integrated policy platform for national banks and federal savings associations (FSA), while recognizing differences anchored in statute.
Attachment A lists the rescinded OTS documents and the OCC documents, if any, that replace the rescinded documents.1 OTS documents are rescinded for one of the following reasons:
Many of the documents rescinded by this bulletin focus on the supervision and examination of FSAs.2 While the specific OCC documents now applicable to FSAs in place of the rescinded items are identified in the attached table, several key Comptroller's Handbook booklets warrant close review. These booklets—"Bank Supervision Process," "Community Bank Supervision," and "Large Bank Supervision,"—explain the foundation of the OCC's supervisory philosophy and contain minimum examination procedures that apply to FSAs. As the OCC continues its progress toward one integrated policy platform for national banks and FSAs, it is increasingly important for FSAs to have a thorough understanding of the supervisory philosophy contained in these booklets and how the OCC organizes this guidance.
The "Bank Supervision Process" booklet explains the OCC's overall supervisory philosophy and methods. The booklet integrates general supervisory policy for safety and soundness and specialty areas and includes a consolidated reference for all uniform interagency rating systems in the appendix. It also outlines bank supervision responsibilities and addresses how the OCC coordinates its supervision with other banking and functional regulators. Additionally, this booklet explains how the OCC's quality management programs, Customer Assistance Group, and appeals process support bank supervision.
As explained in the thrift executive outreach meetings held by the OCC during the transition, the OCC employs a risk-based supervisory philosophy focused on evaluating risk, identifying material and emerging problems, and directing individual banks to take corrective action before problems compromise their safety and soundness. This philosophy is embodied in the OCC's supervision-by-risk program. The OCC carries out risk-based supervision for safety and soundness purposes, including in specialty areas such as consumer compliance, asset management, and information technology.
The OCC has implemented a risk-based supervisory framework consisting of the following three components:
Throughout the OCC's policy review and integration process, it has been clear that there are significant similarities and overlap in the guidance that the OCC and the former OTS issued. The two agencies shared objectives that institutions
In addition, both agencies based their examination objectives on the Uniform Financial Institutions Rating System, which the bank regulatory agencies developed under the auspices of the FFIEC. Because of these similarities, the OCC is using the framework outlined above in its examination of FSAs. OCC examiners will rely primarily on OCC-issued examination procedures. Although the OTS published numerous examination procedures addressing specific subject areas, the OCC is not, at this time, rescinding those OTS-issued examination procedures (except as specifically identified in this bulletin or in previous bulletins that have rescinded OTS-issued guidance3). OTS-issued examination procedures will be rescinded as part of our future review of the related subject matter handbook section.
Even before the policy integration is completed, FSAs and national banks may find guidance issued to the other charter type useful for informational purposes. For example, an FSA may find more detailed OCC guidance on a particular topic, such as commercial lending, or a national bank may find more current guidance issued by the OTS on a particular topic, such as mortgage banking. In the course of ongoing supervision the OCC may direct national banks and FSAs to consult such guidance for further information on the subject area or to address supervisory concerns. The OCC will not cite noncompliance with the requirements included in such guidance, however, until application of these requirements has been officially communicated and related OTS-issued guidance, if any, has been rescinded.
As the OCC continues the policy integration process, it will provide periodic updates by issuing additional OCC bulletins. If you have questions about this process, contact Operational Risk Policy, at (202) 649-6550. For questions about the application of current policy guidance, please contact your supervisory office.
John C. Lyons Jr.
Senior Deputy Comptroller and Chief National Bank Examiner
1Attachment B lists additional OCC guidance applicable to FSAs that relates to previously rescinded OTS guidance.
2Separately, supervisory guidance that the OTS issued for internal use (for example, "New Directions Bulletins" issued to examination staff) has been or will be rescinded.
3See OCC 2012-2, "OTS Integration: Rescission of OTS Documents," January 6, 2012; OCC 2012-3, "OTS Integration: Rescission of OTS Transmittal Letters," January 6, 2012; and OCC 2012-5, "Interest Rate Risk Management: FAQs on 2010 Interagency Advisory on Interest Rate Risk Management," January 12, 2012.