Office of the Comptroller of the Currency

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The Office of the Comptroller of the Currency is the primary federal regulator of U.S. national banks.

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The Office of the Comptroller of the Currency is a U.S. government bureau that regulates national banks and federal savings associations. The primary mission of the OCC is to ensure the safety and soundness of the national banking system. The OCC employs a staff of examiners who conduct onsite reviews of national banks and continually supervise bank operations. The agency issues rules and legal interpretations concerning management, investments, lending activities, and other aspects of bank operations.

The National Currency Act was signed by President Abraham Lincoln in February 1863. It created a system of nationally chartered banks to issue standardized national bank notes, and the OCC was established to administer the new banking system. The National Currency Act was superseded by the National Banking Act, which became law in June 1864 and authorized the OCC to hire a staff of national bank examiners to supervise banking institutions. The National Banking Act also gave the OCC authority to regulate lending and investment activities of national banks.

The OCC is part of the U.S. Department of the Treasury, based in Washington, D.C. It is headed by the comptroller of the currency, who is appointed by the president, with the advice and consent of the Senate, for a five-year term. The comptroller also serves as a director of the Federal Deposit Insurance Corporation (FDIC) and as a director of NeighborWorks America (formerly the Neighborhood Reinvestment Corporation), which promotes reinvestment in communities.

The OCC regulated and supervised 797 national banks, 52 federal branches and agencies, and 269 federal savings associations as of 2021, but it regulates and supervises only banks with a national charter. In contrast, banks chartered by individual states are regulated and supervised by state banking authorities or the FDIC, and the Federal Reserve Board regulates and supervises bank holding companies and foreign-based affiliates.

OCC bank examiners review the activities of national banks and assess the safety and soundness of banks. In conducting their safety and soundness reviews, they gauge the bank’s exposure to various risks, including market risk, credit risk, liquidity risk, and legal risk. Moreover, they review the bank’s lending procedures and investment portfolios to ensure that the risks associated with these activities are identified, measured, and managed properly. They also assess bank funding operations, the level and quality of bank capital, bank underwriting standards, the quality of bank earnings, and compliance with consumer banking laws.

In addition to conducting safety and soundness bank exams, the OCC has other regulatory duties. These duties include reviewing applications for new bank charters and branches. The OCC can also take enforcement actions against banks that fail to comply with banking laws and regulations. The OCC can remove bank officers and directors and can promulgate rules and regulations under the authority of the National Bank Act governing investments, lending, and other practices of national banks. The OCC also provides written guidance to the industry in the form of banking circulars, bulletins, and interpretive releases.

Robertson, R. M. (1995). The comptroller and bank supervision. Washington, DC: Office of the Comptroller of the Currency.