Office of the Comptroller of the Currency (OCC)
Candlefocus EditorThe OCC is mainly funded through examination and processing fees paid by the banks it regulates. It is mandated by the federal banking laws to provide this service and its primary goal is to protect the interests of banks and their customers. The OCC has the authority to grant, modify, and renew national charters and licenses; grant, deny, suspend, and revoke bank or trust company applications; and issue regulations, orders, directions, and instructions to national banks.
The OCC also has the power to take supervisory actions against the banks it regulates. These actions may include denying applications for new bank branches, issuing cease and desist orders, requiring stronger capital positions, and removing bank directors from their positions. It also has the power to revoke the charter of a bank if necessary, which is the most extreme action it can take.
In addition to its regulatory and supervisory roles, the OCC also provides assistance to banks when needed. It does this by publishing rules, regulations, and guidelines that banks can use to better manage their operational and credit risk. It also publishes a variety of reports and studies that provide banks with insight into best practices and emerging trends.
The Office of the Comptroller of the Currency is an important part of the banking sector in the U.S., and it plays a vital role in ensuring the safety, soundness, and effective operation of banks. Its regulatory and supervisory powers are instrumental in preventing banking malpractice, protecting the public’s trust, and giving the banking sector the stability it needs to support the economy.