OCC examiners to focus 2024 attention on risks that led to bank failures
By 
Aaron Nicodemus2023-10-10T14:00:00
Bank examiners from the Treasury Department’s Office of the Comptroller of the Currency (OCC) are focusing their supervision attention on how banks manage risks that brought down three mid-sized financial institutions earlier this year.
The OCC’s “Fiscal Year 2024 Bank Supervision Operating Plan,” released Sept. 28, said its risk-based supervision will focus on asset and liability management, specifically interest rate and liquidity risks. OCC supervisors will expect banks to have conducted stress tests across a sufficient range of scenarios, sensitivity analyses of key model assumptions and liquidity sources, and contingency planning.
The OCC will want to understand banks’ plans in the event of a run on deposits, which can weaken a bank’s balance sheet in hours in the age of digital banking and social media. Examiners will want to know a bank has tested its protections against a bank run on numerous scenarios and have adequate contingency borrowing lines and liquidity sources.
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