OCC 2018 Priorities Released – Are you prepared?

Starting in 2018, the Midsize and Community Bank Supervision (MCBS) team of the Office of the Comptroller of the Currency (OCC) will focus on risk analysis, credit underwriting, strategic risk, asset management, operational risk and other objectives. The context of these objectives is as follows:

Risk Analysis

The incorporation of horizontal initiatives’ core supervisory focal points and participations in LBS-, CBS- and NRC- horizontal initiatives with a focus on training opportunities and efficiencies is a key characteristic of the plan.

Credit Underwriting

High-growth areas, underwriting practices evaluations on renewed or new loans, concentrated portfolios such as commercial real estate, and new products will be areas of focused review for the MCBS team. Assessments in collateral valuation, loan servicing, spillover impact and problem loan workout are expected.

Strategic Risk

An emphasis on evaluating profitability enhancement through services and products, business model changes and short- and long-term strategies keeping in mind the competitive and economic pressures, as well as the interest rate environment, will be areas of concentration.

Asset Management

The new fiduciary rule, guidance related to investment products and coverage regarding the sales practices and activities of retail nondeposit products are targets of focus.

Operational Risk

A continuation of the Federal Financial Institutions Examination Council’s Cybersecurity Assessment Tool to identify, assess and address any gaps in a bank’s cyber resilience is expected. Third-party risk management, information security and data protection are also key focuses. The life cycle of systems development, user awareness programs, bank management’s response to an increase in operational risk and change management plans regarding accounting, regulatory and consumer compliance issues are expected to be assessed.

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CLOUDecision Complete provides community banks with a credit workflow-ready platform that not only addresses all of the OCC’s priorities but also allows lending departments to improve efficiency by underwriting and analyzing loans with more accuracy and in less time. A few of the key features of this cloud-based solution include:

• Standardizes procedures and processes across loan offerings and departments
• One-snapshot review of overall portfolio or individual loans
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• Data transparency for borrowers, managers, regulators and others
• Notifies applicants of decisions and generate reports instantly
• Improves expectations of borrowers and lenders via features such as credit analysis, decisioning and single-source data points

With CLOUDecision’s customizable solutions, banks and credit unions enjoy a more streamlined approach to loan decisioning. Learn more about how CLOUDecision can save you time, money, and resources by signing up for a free live demo.