Office Of The Comptroller Of The Currency (OCC)

DEFINITION of ‘Office Of The Comptroller Of The Currency – OCC’

A U.S. federal company that serves to charter, regulate and supervise the national banks and the federal branches and agencies of foreign banks. The Workplace of the Comptroller of the Currency (OCC) is headed by the Comptroller of the Currency, who is designated by the president and authorized by the Senate.

BREAKING DOWN ‘Office Of The Comptroller Of The Currency – OCC’

Established through the National Currency Act of 1863, the OCC keeps track of banks to ensure they are running securely and meeting all requirements. In specific, the OCC monitors capital, property quality, management, earnings, liquidity, sensitivity to market danger, infotech, compliance and community reinvestment.

OCC Structure

There are four district offices in addition to a workplace in London to supervise the international activities of nationwide banks. The staff of bank inspectors carries out on-site evaluations of nationwide banks and federal cost savings associations and provides guidance. This is done by evaluating loan/investment portfolios, funds management, capital, profits, liquidity and level of sensitivity to market threat for all national banks and federal thrifts. Examiners likewise examine internal controls and compliance with the suitable laws. Management’s capability to identify and control risk is assessed.

Power of the OCC

Aside from taking a look at nationwide banks and federal thrifts, the OCC has the power to approve or deny applications for new charters, branches, capital or other changes in the banking structure. The OCC can take supervisory actions versus the banks under its jurisdiction if it figures out noncompliance with laws and guidelines. Officers and directors might be gotten rid of at the OCC’s instructions. The OCC may also negotiate contracts to change a bank’s practices, concern cease and desist orders, and order financial penalties.

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