Office of the Comptroller of the Currency (OCC)
What Is the Office of the Comptroller of the Currency?
The Office of the Comptroller of the Currency (OCC) is a federal agency that supervises the execution of laws connecting with national banks. In particular, it contracts, directs, and regulates national banks, federally chartered savings associations, and federal branches and agencies of foreign banks in the U.S. The Comptroller of the Currency, delegated by the President and approved by the Senate, heads the OCC.
How the Office of the Comptroller of the Currency (OCC) Works
Established through the National Currency Act of 1863, the OCC screens banks to guarantee they operate safely and meet all requirements. The OCC directs several regions including capital, asset quality, management, earnings, liquidity, sensitivity to market risk, data technology, compliance, and community reinvestment.
The OCC is an independent bureau inside the Department of Treasury. Its mission statement checks it is to "guarantee that national banks and federal savings associations operate in a safe and sound way, give fair access to financial services, treat customers fairly, and follow applicable laws and regulations."
Congress doesn't fund the Office of the Comptroller of the Currency. All things considered, funding is from national banks and federal savings associations, who pay for examinations and processing of their corporate applications. The OCC additionally gets revenue from its investment income, which is essentially from U.S. Treasury securities.
The agency is going by the Senate-affirmed, comptroller for a five-year term. The comptroller additionally fills in as director of the Federal Deposit Insurance Corporation (FDIC) and NeighborWorks America.
OCC Structure
The OCC has four district offices, field and satellite offices cross country, and a looking at office in London. The staff of bank examiners conducts nearby audits of national banks and federal savings associations or thrifts. They give supervision by examining the establishment's loan and investment portfolios, funds management, capital, earnings, liquidity, and sensitivity to market risk. Examiners additionally audit internal controls and compliance with applicable regulations and laws and assess management's ability to recognize and control risk.
Power of the OCC
The Office of the Comptroller of the Currency has the power to support or deny applications for new contracts, branches, capital, and different changes in the banking structure. They might make supervisory moves against banks under its jurisdiction for noncompliance with laws and regulations. Further, the agency has the authority to eliminate officers and directors. Different obligations incorporate the power to arrange agreements to change a bank's practices, impose monetary punishments, and issue [cease and desist](/quit it) orders.
Following the [Dodd-Frank Act](/dodd-frank-financial-administrative change charge), the Office of the Comptroller assumed the responsibility for the continuous examination, supervision, and regulation of federal savings associations. During that very month, the OCC issued a last rule executing several provisions of the Dodd-Frank Act, including changes to work with the transfer of capabilities from the Office of Thrift Supervision.
Features
- The Office of the Comptroller of the Currency (OCC) contracts controls, and manages both national and foreign banks operating in the U.S.
- Delegated by the president, the OCC is funded by the actual banks that must pay examination and processing fees.
- The OCC has a considerable amount of power, including the ability to deny applications for new bank offices, eliminate bank directors, and even make supervisory moves against the banks.
