The OCC withdrew its participation in ICBA-opposed interagency principles for climate-related financial risk management for financial institutions with $100 billion or more in total consolidated assets.
OCC Announcement: In a statement, Acting Comptroller of the Currency Rodney E. Hood said the principles are overly burdensome and duplicative, citing existing agency guidance for banks to maintain a sound risk management framework.
ICBA Advocacy: In a national news release after regulators issued the guidance in October 2023, ICBA said it is troubled by the impact these principles may ultimately have on community banks. In previous letters to regulators, ICBA said the principles could ultimately trickle down to affect community banks.
SEC Announcement: The OCC news follows last week’s SEC announcement that it is ending the defense of its rule requiring public companies to issue climate-related disclosures. ICBA commended the SEC, citing the rule’s unprecedented costs and potential liabilities.
