What is ‘Office Of The Comptroller Of The Currency – OCC’
A U.S. federal agency that serves to charter, regulate and supervise the national banks and the federal branches and agencies of foreign banks. The Office of the Comptroller of the Currency (OCC) is headed by the Comptroller of the Currency, who is appointed by the president and approved by the Senate.
Explaining ‘Office Of The Comptroller Of The Currency – OCC’
Founded through the National Currency Act of 1863, the OCC monitors banks to ensure they are operating safely and meeting all requirements. In particular, the OCC monitors capital, asset quality, management, earnings, liquidity, sensitivity to market risk, information technology, compliance and community reinvestment.
OCC Structure
There are four district offices as well as an office in London to supervise the international activities of national banks. The staff of bank examiners conducts on-site reviews of national banks and federal savings associations and provides supervision. This is done by analyzing loan/investment portfolios, funds management, capital, earnings, liquidity and sensitivity to market risk for all national banks and federal thrifts. Examiners also review internal controls and compliance with the applicable laws. Management’s ability to identify and control risk is evaluated.
Power of the OCC
Aside from examining national banks and federal thrifts, the OCC has the power to approve or deny applications for new charters, branches, capital or other changes in the banking structure. The OCC can take supervisory actions against the banks under its jurisdiction if it determines noncompliance with laws and regulations. Officers and directors may be removed at the OCC’s direction. The OCC may also negotiate agreements to change a bank’s practices, issue cease and desist orders, and order monetary penalties.
Further Reading
- Board structure, ownership, and financial distress in banking firms – www.sciencedirect.com [PDF]
- Bank structure and failure during the financial crisis – www.emerald.com [PDF]
- Regional Economic Disparities in the Districts of the Office of the Comptroller of the Currency – heinonline.org [PDF]
- Derivatives-Related Bank Activities as Authorized by the Office of the Comptroller of the Currency and the Federal Reserve Board – heinonline.org [PDF]
- Special Studies on Technology and Banking: Banking over the Internet – heinonline.org [PDF]
