A peer review of the OCC’s supervisory approach for large and mid-sized institutions recommended that the regulator make safety and soundness its key objective.
The OCC has been criticized for missing clues leading up to the financial crisis, and some lawmakers have called for increased scrutiny of financial regulators, Financial Times reports.
The recommendation was one of seven, including the enhancement of risk identification by ensuring lead experts have the ability to provide input into supervision through exam reviews and horizontal reviews; better integration of systems for assigning supervisor ratings; and the transfer of exam teams and experts from individual locations to shared OCC field offices.
Other recommendations included addressing staffing shortages; enhancing the scope and consistency of supervisory planning, risk assessment and intervention by enhancing the peer view process to involve all key players; and to ensure that the Enterprise Governance function begins work on quality management documentation.
“Some of the recommendations could have a significant impact on how we do our business,” Comptroller of the Currency Thomas Curry said, according to Financial Times. “But that’s in keeping with the spirit and culture of a 150-year-old agency that has demanded much of itself to meet the challenges of supervising a complex and changing industry.”
The review, conducted by regulators from Australia, Canada and Singapore, was led by former OCC senior deputy comptroller Jonathan Fiechter.