OCC proposes to raise heightened standards threshold for banks

The Office of the Comptroller of the Currency is proposing to raise the threshold for which its heightened supervisory standards apply to banks from $50 billion to $700 billion in assets.

In 2014, the OCC adopted heightened governance and risk management guidelines for banks with at least $50 billion in average total consolidated assets. Among other things, the guidelines stated that covered institutions should establish and adhere to a written risk governance framework to manage and control their risk-taking activities. The guidelines also set minimum standards for the institutions’ boards of directors to oversee the risk governance framework.

In a statement today, the OCC said that raising the threshold would reduce regulatory burden. Comments on the proposal are due 60 after publication in the Federal Register.