DEFINITION of 'Office Of The Comptroller Of The Currency - OCC'

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

BREAKING DOWN 'Office Of The Comptroller Of The Currency - OCC'

Founded through the National Currency Act of 1863, the OCC monitors banks to ensure they are operating safely and meeting all requirements. In particular, the OCC monitors capital, asset quality, management, earnings, liquidity, sensitivity to market risk, information technology, compliance and community reinvestment.

The OCC is an independent bureau within the Department of Treasury. Its mission is to "ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations." The OCC does not receive its funding from Congress. Its main source of financing is derived from national banks and federal savings associations, which pay for their examinations and processing of their corporate applications. The OCC also receives revenue from its investment income, which is primarily from U.S. Treasury securities. Once confirmed by the Senate, the comptroller is scheduled to head the agency for a five-year term. He also serves as director of the Federal Deposit Insurance Corporation (FDIC) and NeighborWorks America.

OCC Structure

There are four district offices as well as an office in London to supervise the international activities of national banks. The staff of bank examiners conducts on-site reviews of national banks and federal savings associations and provides supervision. This is done by analyzing loan/investment portfolios, funds management, capital, earnings, liquidity and sensitivity to market risk for all national banks and federal thrifts. Examiners also review internal controls and compliance with the applicable laws. Management's ability to identify and control risk is evaluated.

Power of the OCC

Aside from examining national 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 against the banks under its jurisdiction if it determines noncompliance with laws and regulations. Officers and directors may be removed at the OCC's direction. The OCC may also negotiate agreements to change a bank's practices, issue cease and desist orders, and order monetary penalties.

In July 2011, under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Office of the Comptroller assumed the responsibility for the ongoing examination, supervision and regulation of federal savings associations. During the same month, the OCC issued a final rule implementing several provisions of the Dodd-Frank Act, including changes to facilitate the transfer of functions from the Office of Thrift Supervision.

RELATED TERMS
  1. National Bank Surveillance System

    A computerized monitoring system developed and implemented in ...
  2. Options Clearing Corporation - ...

    An organization that acts as both the issuer and guarantor for ...
  3. Dual Banking System

    The system of banking that exists in the United States in which ...
  4. Primary Regulator

    The state or federal regulatory agency that is the primary supervising ...
  5. Option Disclosure Document

    A publication issued by the Options Clearing Corporation (OCC) ...
  6. Bank Failure

    The closing of an insolvent bank by a federal or state regulator. ...
Related Articles
  1. Personal Finance

    OCC Warns Auto Loan Market Speeding Toward Trouble

    Auto loan lenders may face trouble with the OCC warning of delinquencies and defaults.
  2. Personal Finance

    The Feds Eye More Limits for Wall Street (GS, MS)

    Federal banking regulators are seeking curbs on merchant banking and commodities trading that may have a severe impact on leading Wall Street firms.
  3. Investing

    Introduction To The Chinese Banking System

    As China steps into a greater role in the global economic system, their banking system continues to evolve.
  4. Managing Wealth

    An Investor's Guide To Bank Stress-Testing

    Just how are bank stress tests performed and what is the logic behind them? And is a stress test useful for evaluating a bank's stock?
  5. Trading

    Explaining the Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It regulates monetary policy and supervises the nation’s banking system.
  6. Financial Advisor

    Who's Looking Out For Investors?

    If your account has been mishandled, FINRA and the SEC are among several organizations that can help.
  7. Insights

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  8. Insurance

    Insurance Companies Vs. Banks: Separate And Not Equal

    Insurance companies and banks are both financial intermediaries. However, they don't always face the same risks and are regulated by different authorities.
  9. Investing

    Fintechs' Expansion Will Shatter the Status Quo

    Many fintech companies will dramatically expand their national footprint as U.S. regulators open up the sector
RELATED FAQS
  1. What are some of the major regulatory agencies responsible for overseeing financial ...

    Discover the specific responsibilities of some of the major regulatory agencies that oversee financial institutions in the ... Read Answer >>
  2. What is the difference between a savings & loan company and a bank?

    Find out how a savings and loan company, sometimes also known as a thrift or savings institution, focuses on different types ... Read Answer >>
  3. Which federal regulatory agencies approved and are now responsible for enforcing ...

    Learn which federal regulatory authorities approved and are jointly responsible for the implementation and enforcement of ... Read Answer >>
  4. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  5. How do leverage ratios help to regulate how much banks lend or invest?

    Learn what leverage ratios mean for banks, how regulators restrict leverage, and what impact ratios have on a bank's ability ... Read Answer >>
  6. What agencies were created by the Glass-Steagall Act?

    Learn about the Glass-Steagall Act of 1933 that significantly reformed the banking industry, and specifically, what government ... Read Answer >>
Hot Definitions
  1. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  2. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  3. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  6. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
Trading Center