OCC to banks: Don’t get complacent on risk monitoring

Banks should still be on guard despite relative calm in the industry compared to where things were three months ago following the collapse of Silicon Valley Bank (SVB), the Treasury Department’s Office of the Comptroller of the Currency (OCC) warned.

The agency’s semiannual risk perspective released Wednesday noted compliance and operation risks at banks remain elevated regardless of strengthened liquidity levels in response to the failures of SVB, Signature Bank, and First Republic Bank. The OCC also flagged signs of stress among credit risks, a result of high inflation and rising interest rates.

In a statement accompanying the release of the report, Acting Comptroller of the Currency Michael Hsu said the agency expects banks to “be on the balls of their feet” regarding risk management. He noted banks should be: