The Office of the Comptroller of the Currency (OCC) has announced a new organizational framework for bank supervision and updates to the structure of its Office of the Chief National Bank Examiner.
According to the OCC, effective October 1, three distinct lines of business will replace the Bank Supervision and Examination Group:
- Large and Global Financial Institutions
- Regional and Midsize Financial Institutions
- Community Banks
Each unit will be led by a Senior Deputy Comptroller who will report to Comptroller of the Currency Jonathan V. Gould.
According to the OCC, these organizational updates will better enable the OCC to ensure that national banks and federal savings institutions support their customers, communities, and a thriving economy.
The OCC ensures that the federal banking system operates in a safe manner, provides fair access to financial services, treats customers fairly, and complies with applicable laws and regulations. The OCC supervises more than 1,000 national banks, federal savings associations, and federal branches and agencies of foreign banks that serve consumers, businesses, and communities across the United States. These institutions range from community banks to the nation’s largest internationally active banks.
The OCC’s current Senior Deputy Comptroller for Bank Supervision and Examination, Greg Coleman, will serve as the Senior Deputy Comptroller for Large and Global Financial Institutions. This Group will include financial institutions with assets in excess of $500 billion, and those institutions that have a foreign parent.
The Regional and Midsize Financial Institutions Group will supervise institutions between $30 and $500 billion in asset size and the Community Bank Group will supervise institutions with up to $30 billion in assets. Acting Senior Deputy Comptrollers for these new lines of business will be selected in early October.
“This realignment is consistent with our historic risk-based supervision approach and my commitment to tailor supervision to bank risk profile,” said Gould. “Over time, I expect these three bank supervision groups to generally align with our tailored regulatory framework. This new structure benefits the institutions we supervise and improves the management of examiner resources and supports examiner development and professional growth.”
In addition, the Office of the Chief National Bank Examiner will be composed of five divisions that will report to Senior Deputy Comptroller and Chief National Bank Examiner Jay Gallagher. The divisions have been streamlined under the following:
- Deputy Comptroller for Supervision Systems and Analytical Support
- Deputy Comptroller for Credit Risk
- Deputy Comptroller for Compliance and Operational Risk
- Chief Economist and Deputy Comptroller for Economics
- Chief Accountant and Deputy Comptroller for Capital, Market Risk and Asset Management.
The Office of Financial Technology will report directly to Senior Deputy Comptroller and Chief National Bank Examiner Gallagher.
In mid-July, the U.S. Senate confirmed Gould as the next Comptroller of the Currency for a five-year term by a vote of 50-45. As Comptroller of the OCC, Gould serves as administrator of the federal banking system and CEO of the OCC. The Comptroller also serves as a Director of the Federal Deposit Insurance Corporation (FDIC) and a member of the Financial Stability Oversight Council (FSOC) and the Federal Financial Institutions Examination Council (FFIEC).
Prior to becoming Comptroller of the Currency, Gould was a partner at the law firm Jones Day. He previously served as the Senior Deputy Comptroller and Chief Counsel at the OCC and twice served on the staff of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, including as its Chief Counsel. He has spent the bulk of his career in the private sector as a consultant and lawyer, advising banks and other financial services firms on regulatory matters and risk management.
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