OCC: Commercial credit risk stabilizing

The OCC reported that the federal banking system remains sound but said it expects banks to remain diligent and adhere to prudent risk management practices across all risk areas.


Details: In its Semiannual Risk Perspective for Fall 2024, the OCC said:

  • Commercial credit risk remains moderate and shows signs of stabilizing as risks are better identified, monitored, and controlled.

  • Overall retail credit risk is stable.

  • Operational risk is elevated due to evolving cyber threats.

  • Maintaining appropriate compliance risk management frameworks capable of growing and transforming is important.

  • Community Reinvestment Act-related risks remain stable.

  • Bank funding costs trended higher throughout 2024 but at a slower pace compared with 2023.

Background: The report focuses on issues that pose threats to financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public.