Skip to main content

What the OCC’s heightened risk expectations mean for community banks

Sageworks
January 22, 2014
Read Time: 0 min

New risk management requirements could come into effect in the near future, according to the OCC’s announcement last week. Their proposal, which focused primarily on banks with more than $50 billion in assets, holds an individual institution’s board of directors responsible for the creation of internal tracking systems, as well as supervision of the appointment of risk and audit officers in their banks.

If the proposal passes, big banks will need to take a deeper internal look and determine their risk appetite, as described by the OCC’s Thomas Curry.

Their appetites, paired with a three-year strategic plan determining any unusual risks they may be taking on, will need to be submitted to examiners.

Although these guidelines are currently only under consideration for banks with more than $50 billion in assets, smaller institutions should take it as a forecast for the future of industry-wide standards.

While many community and regional banks have gotten by on traditional spreadsheet-based risk management methods, the expansion of these regulations to those institutions not considered “big banks” could put some stress on their executives and board members to update to a more modern practice of monitoring and tracking their credit risk with robust documentation and accountability.

For more information on how your bank can overcome spreadsheet inertia, download the whitepaper titled “Regulator Concerns with Spreadsheets in Risk Management.

About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

Full Bio

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.

 

Looking for Banker’s Toolbox? You are in the Right Place!

Banker’s Toolbox is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to Banker’s Toolbox Community Online.

Make yourself at home!

Looking for MainStreet Technologies? You are in the Right Place!

MainStreet Technologies is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the contact us button here, or the link in the top navigation, to reach product support for your MST products.

Make yourself at home!

Looking for Sageworks? You are in the Right Place!

Sageworks is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Sageworks products.

Make yourself at home!

Looking for Farin? You are in the Right Place!

Farin is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Farin client portal.

Make yourself at home!

Abrigo acquires construction loan management solutions

Coupled with our lending suite, Construct and +Pay from BankLabs enable end-to-end automated residential/commercial construction loans.

Read the press announcement

BankLabs Logo Abrigo Logo