A Guide to the AMERICAN National Banking System
Introduction
This
guide provides an overview of the national banking system, its regulation, and
the Office of the Comptroller of the Currency (OCC). Specifically, it:
Provides background on the national banking
system.
Provides an overview of the OCC’s
organization, including its mission, structure, and staff.
Discusses the value and approach of OCC
supervision.
Outlines the OCC’s corporate application
process and discusses permissible banking activities for national banks.
Discusses the OCC’s supervision
philosophy and its examination process.
Shows how the OCC uses checks and
balances to ensure equitable, quality supervision.
Includes
OCC contacts, additional OCC publications, and other resources.
Creation of the National Banking System
The national
banking system was conceived by President Abraham Lincoln and Treasury
Secretary Salmon P. Chase to revive the national economy and promote a uniform
system of currency and credit. The National Currency Act (Act), which created
the national banking system, was enacted in 1863. Provisions of that act were
reenacted and clarified by the National Bank Act a year later, in 1864. The
opening in
Under the direction of the Comptroller of the
Currency, the national banking system acquired a reputation for safety and
soundness that inspired confidence from the banking public.
The System Today
Today the national banking system consists of around
2,000 national banks, their branches, and other facilities located throughout
the
The OCC Today
The
OCC’s mission is to charter national banks, to oversee a nationwide system of
banking institutions, and to assure that national banks are safe and sound,
competitive and profitable, and capable of serving in the best possible manner
the banking needs of their customers. The OCC’s mission ensures a robust and
financially sound national banking system in which national banks soundly
manage their risks, comply with applicable laws, compete effectively with other
providers of financial services, offer products and services that meet the
needs of customers, and provide fair access to financial services and fair
treatment of their customers. For more than 140 years, the OCC has been a
leader in examining national banks, evaluating industry trends, identifying
emerging banking issues, and, through the supervisory process, assisting
national banks to meet the challenges of today’s fast-changing financial
markets.
Throughout
its history, the OCC has sought to provide the highest quality bank
supervision. The OCC’s approach to bank supervision has evolved in response to
the experiences of many years. It is based on a judicious combination of on-
and off-site activity conducted by locally based examiners and front-line
supervisors who know the communities where national banks operate. It is backed
by the strength and depth of a national organization of professionals dedicated
to the interests of a safe, sound, fair, and competitive banking system. The
OCC maintains a high-quality, professional staff of bank examiners, risk
specialists, economists, and attorneys to ensure quality bank supervision.
The
OCC also ensures that supervision is fair and balanced. The OCC’s Office of the
Ombudsman serves a key role in making the OCC more accessible to the banking
industry and its customers. The Ombudsman provides bankers with an avenue to
discuss problems in confidence, explore options, and seek advice. The OCC’s
Customer Assistance Group, part of the agency’s Office of the Ombudsman, was
created to assist consumers in resolving complaints about national banks, offer
guidance, and answer questions.
The OCC
The OCC’s staff of national bank examiners and other
professional and support personnel examine and supervise national banks and
federally licensed branches and agencies of foreign banks. Supervision policy
and guidance is centralized at the national level to ensure continuity and
consistency nationwide. Although this structure is instrumental in setting the
OCC’s overall direction, the OCC believes that supervision of a national bank
occurs most effectively when performed by staff located in or near the bank.
This section describes how the OCC uses a flexible structure, deploys its
expert staff, and communicates regularly with bankers to ensure effective
supervision at the local level as well as nationwide.
Organization
The OCC’s
organizational structure is designed to promote top-quality bank supervision.
The OCC’s structure is flexible so that it can adjust its supervision to
changes in the industry’s structure and activities. Most importantly,
decision-making authority is decentralized through examiners, who interact
regularly with national banks. Decentralized decision making, coupled with
centralized policymaking and a system of checks and balances, provides national
banks with the assurance that OCC’s supervision is fair, balanced, and expert
with respect to their business focus.
Approximately
1,800 OCC bank examiners work from numerous locations around the country and in
Assistant deputy
comptrollers (ADCs) in field office locations and examiners-in-charge (EICs) in
midsize and large banks maintain close local contacts with individual national
banks. The OCC’s nationwide examiner staff conducts on-site reviews of national
banks and provides ongoing supervision of bank operations. Legal and licensing
staffs are based at the national headquarters as well as in the four district
offices.
The OCC’s broad responsibilities and
national perspective give the agency unique breadth and depth in understanding
the banking industry and its emerging issues and challenges. The OCC’s
workforce also includes subject matter experts who work with ADCs and midsize
and large bank EICs across the country. Collectively, they enable the OCC to
deliver quality supervision effectively at the local level.
Lines of
Supervision
The
OCC has aligned its domestic supervisory operations into two lines of
supervision
— Community banks and midsize banks, on one hand,
and large banks, on the other. The OCC implemented this structure to enhance
consistency, gain efficiency, and serve the diverse national bank population
more effectively.
• Community bank
supervision includes community banks involved mostly in traditional banking
activities. The OCC’s district operations are focused on the needs of these
national banks. Midsize bank supervision generally includes companies with
national bank assets totaling between $8 and $25 billion, either in a single
charter or aggregated among several charters. Oversight of these more complex
organizations is centralized under a single deputy comptroller located in
•
Large bank supervision includes the largest national banking
companies, which generally are involved in the most complex activities and
operate over wide geographic areas. This line of supervision is coordinated
through the Large Bank Supervision Department headquartered in Washington, DC,
and is carried out by examination staff assigned to those companies on a full-time
basis.
Bank Supervision Staff
The ADCs and
large bank EICs are front-line supervisors. They monitor the condition of
assigned banks. They also schedule and conduct regular safety and soundness,
compliance, and specialized area examinations. In addition, they maintain an
awareness of trends within the banking industry and the financial services
marketplace and deal with a variety of issues that pose potential risks to the
institutions they supervise. The ADCs supervise the majority of national bank
examiners who work from field offices situated strategically throughout the
country to best serve the population of national banks. Large bank EICs and
their staff are assigned supervision of a particular bank.
The OCC uses a “Portfolio Manager
Approach” to bank supervision to build examiners’ in-depth knowledge of
community banks and their operating environments. Local examiners, who have
substantial authority, perform the direct bank supervision activities. This
fosters effective and consistent communications between examiners and banks,
assures continuity in supervisory matters, and enhances the OCC’s
responsiveness to bankers’ questions and concerns.
The
OCC determines the frequency of its examinations (the supervisory cycle) based
on the bank’s size, complexity, risk profile, and condition. Examiners meet
with bank management and the bank’s board of directors throughout the
supervisory cycle to obtain information or discuss issues. Full-scope
examinations normally are conducted either annually or up to every 18 months
(12 CFR 4.6), but examination activities may be spread throughout the
supervisory cycle. The portfolio manager contacts bank management to:
•
Discuss current issues in the bank and in financial trends.
•
Follow-up on matters from prior examinations.
•
Explore the bank’s plans for new products and services,
expansion, or other possible changes.
In this way, the OCC helps national bankers explore
possible pitfalls in new products and services, flag emerging areas of concern,
and address existing problems before they worsen. In addition, portfolio
managers can provide information and tools that may help local bankers evaluate
their business.
The OCC assigns a dedicated EIC to each midsize bank
to develop and implement a supervisory strategy, with assistance from other
examiners who also are involved in the supervision of either community or large
banks. Having one examiner assigned overall responsibility for continuous
supervisory oversight allows for ongoing communication with bank management. This
supervisory structure assists the OCC in the prompt identification of
supervisory issues in these growing and increasingly complex institutions.
The OCC
maintains a resident onsite EIC, supported by a resident core staff of
examiners, in each of the largest banks. These examiners, who report directly
to a deputy comptroller in Large Bank Supervision, perform ongoing analysis
related to the banks’ condition, risk profiles, economic factors, and
marketplace developments.
Effective Use of Technology
OCC staff uses technology to promote efficient,
consistent supervision and effective communication and to resolve issues
quickly. Examiners, even in remote locations, can access a wealth of
information through computers loaded with current policy guidance and specialized
examination and diagnostic tools, and that are connected to network systems.
The OCC’s extensive resources are available increasingly to other audiences as
well as through the OCC’s Web site (http://www.occ.treas.gov/).
National BankNet is a system that allows the OCC to
communicate with and deliver services via the Internet to the financial
institutions it regulates. Available exclusively to national banks, BankNet is
a secure extranet site designed to meet bankers’ needs and complement OCC
regulatory activities. It
accommodates a bank’s real-time decision making, improves two-way
communications between the bank and the OCC, and delivers products and services
of value to bankers. National BankNet serves as a primary system for the agency
to communicate with national banks in times of national emergency.
National BankNet contains an electronic process,
called e-Corp, for completing, signing, and submitting corporate applications. e-Corp features hyperlinks to all laws, regulations, and
licensing terms; the ability to save working drafts of applications; complete
application checking; and easy on-line signature and submission. e-Corp is part of the OCC’s continuing effort to eliminate
unnecessary regulatory burden, simplify administrative processes, enhance
communications, reduce paperwork, and take full advantage of e-government
mandates.
OCC Staff Expertise
Like the banking
industry, the OCC adjusts its hiring, training, and deployment of staff to
reflect the changing mix and increasing complexity of bank activities. The OCC
seeks to anticipate new needs, and it creates programs to enhance employee
expertise in specific areas. The OCC employs experts in consumer compliance,
information technology, fraud, fiduciary and asset management, as well as
attorneys, economists, and staffs with in-depth knowledge in licensing, bank
accounting, retail credit, capital markets, community development, risk
modeling, and other areas.
The OCC recognizes the value many bankers derive
from having seasoned and knowledgeable examiners with diverse experience and
specialized skills examining their banks. The OCC regularly modifies and
updates its examiner’s training curriculum to ensure that examiners have the
knowledge, skills, and abilities needed to supervise banks effectively. As a
result, OCC examiners have a broad background on which to base their assessment
of the condition of national banks.
The average experience level of OCC’s examining
staff is more than 14 years. Many years of experience on the job gives the
typical examiner insight and perspective from observing and analyzing banks of
all kinds in different areas and through various economic conditions. This
broad knowledge base enhances the advisory function that examiners can provide
to bank management and boards of directors.
The OCC’s Outreach Program
The OCC supports national banks by being a leading
source of regulatory and supervisory information for the financial services
industry. In addition to performing regular on-site examinations and periodic
supervisory updates, the OCC disseminates information on emerging issues,
supervisory concerns, and industry best practices covering a wide range of
issues. These programs include instructor-led workshops designed exclusively
for community bank directors
and telephone
seminars aimed at community national banks but available industry-wide through
common technology. These high-quality, cost-effective programs have immediate,
practical application and focus on critical industry issues and trends.
Moreover, OCC
district and field office staff regularly sponsor outreach meetings with
bankers and other local financial service industry stakeholders. Agendas
organized to meet the specific needs of the local audience typically include
examiner presentations and roundtable discussions on timely supervision matters
where participants share ideas and offer different perspectives on the issues
of the day. Presentations cover such topics as legal and regulatory
developments and changes in banking laws, credit underwriting, retail credit,
fraud detection and prevention, interest rate risk, economic updates, community
development and investments, consumer and Community Reinvestment Act
compliance, Bank Secrecy Act, anti-money laundering, audit, and corporate
activities.
The OCC’s frontline managers are involved in these
outreach efforts. District deputy comptrollers, ADCs, and EICs forge strong
relationships with a wide range of industry groups, serving as OCC
spokespersons at meetings and conferences with bank executives, boards of
directors, and officials of other federal, state, and local government
agencies. They also meet with public interest groups and other members of the
public to discuss matters of mutual interest and to clarify and enhance
understanding of OCC policy.
Communications
The OCC is
committed to continual, effective communication with national banks.
Communication includes formal and informal conversations, meetings, and written
policy guidance and examination reports. The OCC strives to be professional,
objective, clear, informative, and consistent in all communications. Examiners
communicate with bank management and board members as often as the bank’s
condition and interests and the examiners’ findings require.
The OCC
periodically provides material to bankers about changes in laws, regulations,
and supervisory policy. Issuances also discuss emerging issues, threats to the
banking industry, and possible frauds. The OCC disseminates information in
advisory letters, alerts, bulletins, handbooks, and manuals. Issuances are
available electronically to the industry and general public on the OCC’s Web
site and through BankNet for national banks.
The Comptroller’s Handbook, which
contains policies and procedures for national bank examinations, is updated regularly.
The handbook provides in-depth discussions of the various aspects of bank
products and services, including associated risks. Additionally, the handbook
(http://www.occ.treas.gov/handbook/chndbk.htm) provides guidance on the OCC’s
expectations for management and oversight.
The
Comptroller’s Licensing Manual (Licensing Manual) explains OCC policies
and procedures for establishing, acquiring, or converting to a national bank,
and effecting structural changes and corporate expansion. The Licensing Manual
(http://www.occ.treas.gov/corpapps/corpapplic.htm) describes requirements for
corporate applications and the processes for public comment and OCC review and
analysis of both.
The OCC also disseminates information on “best
practices” to strengthen the national banking system. This includes information
on various subjects, such as credit underwriting, privacy, and community
development.
Assessments and Fees
The
OCC is a non appropriated federal agency funded through assessments and fees
paid by national banks. The OCC publishes an assessment and fee schedule at
least annually in a bulletin entitled, “Notice of Comptroller of the Currency
Fees.” A copy of the current schedule may be obtained from the OCC’s
Communications Division or by visiting our Web site at http://www. occ.treas.gov/.
The National Bank Charter
The national
bank charter is a flexible, dynamic license to provide a broad array of
financial products and services. This section describes how the OCC’s licensing
process works, in general, and then focuses on alternative means of entry into
the national banking system, such as acquiring a national bank charter. It then
describes the broad range of activities available to national banks and how
they may be structured.
The OCC’s Licensing Process
The Licensing Manual describes
requirements for:
•
Applications to establish, acquire, or convert to a national
bank, and
•
Existing national banks to effect corporate changes,
including geographical expansion through branching, merger, acquisition, and
structural changes to enable delivery of new products or services.
The Licensing Manual sets out OCC’s policies and
step-by-step procedures, so that applicants know what to do and what to expect
from the OCC. The OCC works continually to streamline application filing and
review processes and to minimize burden, consistent with maintaining safety and
soundness and satisfying statutory requirements. Staff conducts internal
reviews and obtains feedback from applicants to spot areas for improvement.
The Licensing Manual is available on the OCC’s Web
site, including current application forms. The OCC is equipped to accept an
ever-increasing volume and variety of application material electronically from
national banks through e-Corp on National BankNet.
Licensing and legal staffs in the district offices
and national headquarters are available by telephone, e-mail, or meetings, to
advise applicants and answer their questions. This is particularly useful for
the early discussion of proposals that are unusual or highly complex.
The OCC will accept draft applications
and provide feedback to applicants before they file an application. The OCC may
approve or conditionally approve or deny any filing after reviewing the
application and considering all relevant factors. The OCC may impose conditions
if it determines that they are necessary or appropriate to ensure that approval
is consistent with applicable statutes, regulations, OCC policies, and safe and
sound banking practices.
Entry into the
National Banking System
There are two dominant ways that an organizing
group, company, or bank can enter the national banking system:
•
Establish a new national bank.
•
Convert an existing institution to a national bank.
A national bank
may be owned directly by individuals or a holding company. The OCC requires
each proposed organizer, director, principal shareholder, and executive officer
to submit biographical and financial reports in connection with applications
for de novo charters and certain other types of corporate applications.
The OCC conducts background checks to assess a person’s competence, experience,
integrity, and financial ability, to determine the person’s qualification to
serve in the proposed capacity. The OCC also may require certain information
from a corporate filer along with financial reports. (See the Interagency
Biographical and Financial Reports form in the “Background Investigations”
booklet of the Licensing Manual.)
Establish a New
National Bank
The OCC approves
proposals to establish national banks that will foster healthy competition,
operate in a safe and sound manner, and have a reasonable chance of success. In
so doing, the OCC does not guarantee that a proposal to establish a national
bank is without risk to the organizers or investors. The OCC’s decision on a
proposed new charter depends primarily on its assessment of the organizers’
qualifications, choice of management, and strength of their business plan.
Given the importance of strong, new, independent
charters and the serious commitment required from an organizing group, the OCC
encourages early contact with licensing staff so that organizers can discuss
plans and confirm required steps in the chartering process. Once an organizing
group is ready to proceed, the OCC will schedule a profiling meeting, which all
organizers must attend.
Throughout the chartering process, the
OCC’s licensing staff works closely with local examiners who will supervise the
new bank. By the time a new bank opens at the end of a successful chartering
process, staff from the OCC’s supervisory office and the organizers normally
will be well acquainted with each other. (See the “Charters” booklet of the
Licensing Manual for a complete discussion of the chartering process.)
Convert
an Existing Institution to a National Bank
Another alternative for entering the national
banking system is to convert a financial institution with a different type of
charter. Under applicable statutes and regulations, state banks, state savings
banks, and other state banking institutions engaged in the business of
receiving deposits, as well as federal savings associations, may convert
directly to national bank charters.1 Conversions generally are not
subject to a public notice and comment period. The OCC has an expedited process
for converting institutions that have favorable ratings from their current
regulators and a sound capital structure. A detailed discussion of conversion
transactions is contained in the “Conversions” booklet of the Licensing Manual.
Permissible National Bank Activities
National banks
may engage in activities that are part of, or incidental to, the business of
banking, or are otherwise authorized for a national bank. The OCC publishes Activities
Permissible for a National Bank, available on the OCC’s Web site. The business
of banking is an evolving concept, and the permissible activities of national
banks similarly change over time. Accordingly, this list contained in the
publication is not exclusive; the OCC may permit national banks to conduct
additional activities in the future. Any activity described in the
publication’s summary as permissible for a national bank also is permissible
for an operating subsidiary of a national bank.
The national bank charter permits several options
for corporate structure. This gives national banks flexibility to structure
their operations in whatever way is most advantageous for them. Applications by
national banks for changes to enable them to engage in new activities may be
subject to the OCC’s licensing process, as described earlier. OCC licensing and
legal experts are available for consultation and advice. Examiners from the
bank’s local supervisory office, or specialists elsewhere in OCC, can help
evaluate any supervisory implications of new proposals.
A national bank
does not need OCC approval to perform any bank-permissible activity directly in
the bank. Banks may alternatively perform activities through other structures,
including:
•
An operating subsidiary.
•
A financial subsidiary.
•
A bank service company.
•
Other equity investment.
1Indirect
conversions also could occur through merging an interim national bank with the
state-chartered entity or federal savings association. For a discussion of
mergers involving interim banks, see the “Business Combinations” booklet of the
Licensing Manual.
Following
are brief descriptions of these alternatives.
Operating Subsidiary
An operating
subsidiary is a means through which national banks are authorized to conduct
their business. It can be a corporation, limited liability company (LLC), or
similar entity. It must be controlled by the national bank, and it may conduct
any activity that the parent bank could engage in directly, either as part of,
or incidental to, the business of banking, as determined by the OCC or other
statutory authority. Although prior OCC approval is required in some cases,
simple after-the-fact notice to the OCC may be sufficient in other cases. For
further information on operating subsidiaries, see OCC regulations at 12 CFR
5.34 and the “Investment in Subsidiaries and Equities” booklet of the Licensing
Manual.
Financial Subsidiary
As authorized by
the Gramm-Leach-Bliley Act, a financial subsidiary is a corporation, LLC, or
similar entity, controlled by one or more insured a depository institution,
that conducts activities that are “financial in nature” or incidental to
financial activities. Financial subsidiaries do not include operating
subsidiaries or bank service companies. However, a financial subsidiary may
perform activities permissible for national banks to engage in directly in
conjunction with activities that are financial in nature or incidental to
financial activities. For a bank to own a financial subsidiary, the bank and
the subsidiary must meet certain requirements and comply with safeguards.
Bank Service Company
National banks
also may make investments in bank service companies. A bank service company is
a corporation, whose capital stock is owned by one or more insured banks, or a
LLC, whose members are insured banks. National banks are specifically authorized
to control this type of subsidiary by the express terms of a federal statute.
Bank service companies may conduct only activities a bank could perform
directly, unless the Federal Reserve authorizes them to conduct other
activities permissible for bank holding companies. If the bank service company
has national and state bank shareholders or members, the activities conducted
must be permissible for all of the insured banks. For further information, see
the Bank Service Company Act, 12 USC 1861-1867, OCC regulations at 12 CFR 5.35,
and the “Investment in Subsidiaries and Equities” booklet of the Licensing
Manual.
Other Equity Investment
A national bank and its operating subsidiary may
make a non-controlling investment, or hold a minority interest, in certain
enterprises. The OCC regulation (12 CFR 5.36) provides for an after-the-fact
notice process if the enterprise is engaged in an activity permissible for
after-the
fact notice under
the OCC’s operating subsidiary regulation (12 CFR 5.34) or if the activity is
substantively the same as that contained in published OCC precedent on non-controlling
investments.
Other
investors in the business may be other banks or non-bank companies. Minority
investments may be used as a way to limit costs, or to enable a bank to engage
in a line of business with partners possessing particular experience or other
important attributes. This option, therefore, provides national banks with
significant business flexibility. For further information, see OCC regulations
at 12 CFR 5.36 and the “Investment in Subsidiaries and Equities” booklet of the
Licensing Manual.
Overview
The OCC
strives to deliver to all national banks the highest possible quality of bank
supervision. Supervisory efforts are directed toward identifying material
problems, or emerging problems, in individual banks or the banking system, and
toward ensuring that such problems are corrected appropriately. Because banking
is essentially a business of managing risk, supervision is centered on the
accurate evaluation and management of risks. The OCC believes that bankers, and
not regulators, should manage their banks. As a result, the OCC expects banks
to establish and follow appropriate risk management practices.
The OCC uses an
integrated risk-based approach to supervision. The goal of this approach is to
maximize the effectiveness of the OCC’s supervision process by assessing all
bank activities under one supervisory plan. With this integrated approach, each
supervisory office ADC or large bank EIC has responsibility for all supervisory
activities, including safety and soundness, information technology, asset
management, and compliance. Integrating all examining areas under one
supervisor ensures that the OCC assesses risks in all areas using the same
criteria and that the most significant risks to the bank will receive the most
supervisory attention.
Clear and meaningful
communication between the OCC and the banks it supervises is a vital component
of high-quality supervision. To that end, the OCC publishes on its Web site
examination procedures and guidance about evolving issues so that bankers are
apprised of OCC examination and supervision activities.
Supervision by Risk
Examiners
meet with bank management and the bank’s board of directors throughout the
supervisory cycle to obtain information or discuss issues. At the completion of
the cycle, the examiners prepare a report and conduct a meeting with the bank’s
board of directors to discuss the results. Those meetings allow participants to
discuss the objectives of the OCC’s supervision; strategic issues that may be
confronting the bank; any major concerns, risks, or issues that may need to be
addressed; and other matters of mutual interest.
An environment
in which examiners and board members communicate openly and honestly benefit a
bank. OCC examiners and professional staff have experience with a broad range
of banking activities and can provide independent, objective information on
safe and sound banking principles and compliance with laws and regulations.
Risk Assessments
The OCC’s primary
supervisory objective is to assess each bank’s ability to identify, measure,
monitor, and control risks through its risk management systems. The OCC does
this through its risk assessment process. The OCC has defined nine categories
of risk for bank supervisory purposes. Those risks are credit, interest rate,
liquidity, price, foreign currency translation, transaction, compliance,
strategic, and reputation.
From a supervisory
perspective, risk is the potential that events, expected or unanticipated, may
have an adverse impact on the bank’s earnings and capital. The simple existence
of risk is not necessarily reason for concern. To put risks in perspective, the
OCC determines whether the risks a bank plans to undertake are warranted.
Generally, risks are warranted when they are understandable, measurable,
controllable, and within the bank’s capacity to readily withstand adverse
performance.
Examiners assess the quantity of risk and
the quality of risk management. They then assign each risk an aggregate
assessment (low, medium, or high) and determine whether the risk is expected to
decrease, increase, or remain stable over the next 12 months.
Ratings
Additionally, all financial
institutions are evaluated and rated under the Federal Financial Institutions
Examination Council’s (FFIEC) Uniform Financial Institutions Rating System.
This system, which is referred to as the CAMELS rating, assesses six components
of a bank’s performance: Capital adequacy, Asset quality, Management
administration, Earnings, Liquidity, and Sensitivity to
market risk. Each component is rated on a scale of 1 to 5, with 1 being the
most favorable rating.
A composite or overall
rating ranging from 1 to 5 also is assigned under the CAMELS rating system. A
rating of “1” indicates the strongest performance and risk management practices
relative to the institution’s size, complexity, and risk profile. Those
institutions present the least level of supervisory concern. Conversely, a
5-rated institution demonstrates critically deficient performance, inadequate
risk management practices, and the highest level of supervisory concern.
Specialized
Area Supervision
The OCC also reviews
specialized functions and areas not specifically addressed in the CAMELS ratings.
This includes the Community Reinvestment Act, USA PATRIOT Act (amended the Bank
Secrecy Act), consumer compliance, information technology, and asset
management. These supervisory programs are risk based and generally integrated
into the CAMELS reviews. Examiners with greater knowledge of specialized areas
typically conduct the reviews of areas and activities that are deemed
high-risk.
For
example, the OCC employs compliance specialists who conduct compliance
examination work. These compliance specialists report to an ADC or a large bank
EIC. In a small bank, generalists usually lead the examination and may be
assisted by other generalists, compliance specialists, and other specialty
(information technology and asset management) examiners. In a large bank, a
compliance specialist generally will lead the compliance examination, assisted
by other compliance specialists, generalists, and specialty examiners.
System
Checks
and Balances
The OCC builds checks and
balances into its high-quality bank supervision program through a number of
offices, including the offices of the Ombudsman and Program and Management
Accountability.
The Ombudsman
The Office of the Ombudsman is a distinct
division of the OCC that operates independently of the agency’s bank supervision
function. The three primary functions of the Ombudsman’s office are: the
National Bank Appeals Process, the Bank Examination Questionnaire, and the
Customer Assistance Group (CAG). These units share a common goal: to act as
catalysts for improvement in the industry and the agency. The Office of the
Ombudsman is committed to the core principles of timely and fair dispute
resolution and quality customer service.
National Bank Appeals
Process
The Office of the
Ombudsman administers a national bank appeals process. Established in 1993 and
modified in 2002, this process ensures that national banks receive a fair and
expeditious review of OCC decisions and actions. The Ombudsman functions
independently, outside of the bank supervision and examination area, and
reports directly to the Comptroller. With the consent of the Comptroller, the
Ombudsman may supersede any OCC decision or action during the resolution of an
appealable matter.
Bank Examination
Questionnaire
The OCC solicits and
receives feedback routinely from the banking industry through “examination
questionnaires” and “satisfaction surveys” that accompany reports of
examination and decisions on corporate applications, respectively. The OCC uses
these tools to gather candid and timely feedback from bankers and others.
Bankers’ feedback enables OCC management to evaluate the overall effectiveness
of supervision and licensing processes and to refine and make improvements
continuously. These measurement tools may be completed and submitted electronically
through National BankNet.
Customer Assistance
Group
The Customer Assistance
Group (CAG) acts as a liaison between national banks and their customers. CAG’s
assistance with customer problem resolution reflects OCC’s commitment to ensure
fair access to financial services and fair treatment for all national bank
customers.
CAG provides complaint
trends and consumer issues through detailed reports, onsite meetings with
bankers, and direct consultation with OCC’s supervision staff. Information
identified from the complaints can serve as an early warning system that alerts
the bank and the OCC to potential areas of risk.
A recent enhancement to CAG
services has been the development of CAGNet. This is a Web-based
“business-to-business” application that facilitates the paperless transfer of
consumer complaints, the banks’ responses, and analytical reports via a secure
and dedicated extranet application. In addition to improving complaint
resolution time, CAGNet has decreased the burden on the industry. To date,
CAGNet is available to national banks and may be accessed exclusively through
National BankNet.
Program
and Management Accountability
The OCC’s Program and Management
Accountability (PMA) units, composed of the Quality Management Division and the
Program Analysis Unit, report directly to the Comptroller through the
Comptroller’s Chief of Staff. The PMA units administer the OCC’s internal
audit, internal review, program analysis, and also serve as liaison to other
audit and investigative offices.
The Quality Management
Division oversees enterprise risk management issues, promotes performance
excellence initiatives, and manages the liaison function. The Program Analysis
Unit provides sophisticated analytical support in the areas of program
analysis, budget review, and staffing plans. These units work together to
ensure that: 1) the OCC’s programs are achieving intended results, 2) resource
usage is aligned with the agency’s mission, 3) resources are protected from
waste, fraud, and abuse, 4) applicable laws and regulations are followed, and
5) reliable and timely management information systems support decision-making.
Central
District Northeastern District Southern District Western District
The following pages list
headquarters divisions that are referenced in this guide and telephone numbers
for district offices. For a complete directory of OCC offices, consult the OCC
Web site at http://www.occ.treas.gov/.
OCC Contacts
General Information
Office of the
Comptroller of the Currency 250 E Street,
Telephone (202)
874-5000 Web site http://www.occ.treas.gov
Selected
Headquarters Divisions
Chief Counsel
Telephone (202) 874-5200
Fax Number (202) 874-5374
Provides legal advice
on a broad range of banking law questions, federal securities laws, electronic
banking, consumer protection laws, corporate structure and governance, lending
limits, affiliate insider transactions, international banking, among other
banking matters.
Chief National Bank
Examiner
Telephone (202) 874-2870 Fax
Number (202) 874-5352
Has responsibility for
formulating and disseminating the OCC’s supervision policies to promote
national bank safety and soundness and compliance with laws and regulations.
The department issues policy, guidance, and examination procedures related to
national banks’ commercial, consumer, asset management, capital markets, and
community compliance activities.
Communications
Telephone (202) 874-4700
Publications (202) 874-4884 Fax Number (202) 874-5263
Provides information,
publications, and design services for the OCC. It also operates and oversees
the Public Information Room, which offers access to OCC public documents; and
processes initial requests filed under the Freedom of Information and Privacy
Acts.
Community Affairs
Telephone (202) 874-5556
Fax Number (202) 874-4652
Helps national banks
to provide community development financing and retail services to underserved
consumers and communities. Staff, located in headquarters and the districts,
provide assistance on local community development resources; sponsor forums for
exchanging ideas among lenders, community groups, and government officials;
conduct research and develop publications on best practices; and administer the
OCC’s Part 24 Community Development Investment Authority.
Community Bank
Activities
Telephone (202) 874-4861
Fax Number (202) 874-5305
Coordinates the OCC’s
efforts to reduce burden and assist in making supervision more effective and
helpful for community banks.
Compliance
Telephone (202) 874-4428
Fax Number (202) 874-5221
Has responsibility for the
development of compliance policy and examination procedures and liaison with
compliance experts in the field and with other agencies.
Customer Assistance
Group (CAG)
Comptroller of the Currency
1301
Toll-free Number (800) 613-6743
Fax Number (713) 336-4301E-mail Customer.assistance@occ.treas.gov
Acts as a liaison
between national banks and their customers but is not an advocate for either
party. CAG provides assistance with problem resolution. It also evaluates
complaint trends and consumer issues, serving as an early warning system for
potential areas of risk.
International Banking and Finance
Telephone (202)
874-4730 Fax Number (202) 874-5234
Has responsibility for
maintaining relations and information exchange with foreign supervisors,
coordinating OCC participation in the FBO Supervision Program in support of the
supervision of federal branches and agencies, and assessing potential risks
associated with banks’ cross-border exposures.
Large Bank
Supervision
Telephone (202)
874-4610 Fax Number (202) 927-0631
|
Has responsibility for supervision of the largest national
banking companies that generally are involved in more complex activities and
operate over wide geographic areas. Licensing |
|
|
Telephone |
(202) 874-5060 |
|
Fax Number |
(202) 874-5293 |
|
Web site |
bos@occ.treas.gov |