OCC flags risks facing US banks and financial institutions
Banks in the US continue to face many risks, the OCC finds
Strategic, credit, operational and compliance risks remain “top concerns” for the financial services industry in the US, according to the latest report by the Office of the Comptroller of the Currency (OCC).
“Strategic risk remains high as banks consider business model changes and face challenges in growing revenue,” the OCC has found.
“Strategic planning remains important as banks adopt innovative products, services, and processes in response to the evolving demands for financial services and the entrance of new competitors, such as out-of-market banks and financial technology firms.”
In December last year, the OCC unveiled plans to grant federal bank charters to fintech firms in the US, which raised concerns from the established players.
On the operational side, banks face ongoing and changing cybersecurity threats, the OCC warns.
“Increased reliance on third-party relationships” and “the need for sound governance over sales practices” also pose considerable risks.
The report covers risks facing national banks and federal savings associations based on data through 30th June 2016.
It presents data in four main areas:
- operating environment,
- bank performance,
- trends in key risks,
- regulatory actions.
Click here to read the full report, Semiannual Risk Perspective for Fall 2016 (PDF).
