An official website of the United States government
Share This Page:
Collection: Semiannual Risk Perspective
OCC Report Discusses Risks Facing National Banks and Federal Savings Associations
Top risks facing national banks and federal savings associations include the lingering effects of a weak housing market, revenue challenges related to slow economic growth and market volatility, and the potential that banks may take excessive risks in an effort to improve profitability.
The Office of the Comptroller of the Currency discussed those risks in its new report, the Semiannual Risk Perspective for spring 2012, which was released today. Key points regarding these risks facing banks include:
According to the report, levels of capital and allowance for loan losses across the industry are more robust and of higher quality than prior to the recession. The higher levels and better quality of capital are noticeable across the industry, but most notable at the largest banks. However, the U.S. banking industry continues to recover from the recent recession and to adjust to significant shifts in its operating and regulatory environments. These shifts are inducing large changes in the risk and profitability profiles of all banks, but may affect community banks differently than large banks. Combined, these conditions present significant operational risk for banks of all sizes.
The report presents data in four main areas: the operating environment; the condition and performance of the national banking system; funding, liquidity, and interest rate risk; and regulatory actions. The report focuses on issues that pose threats to the safety and soundness of those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the general public. The report reflects data as of December 31, 2011. The OCC plans to release the report twice a year.