OCC Publishes Final Guidelines for Large Bank Recovery Plans

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released final guidelines for recovery planning by large insured OCC-regulated institutions.

The guidelines establish enforceable standards for insured national banks, federal savings associations, and federal branches of foreign banks with $50 billion or more in average total consolidated assets. The standards do not apply to community banks.

The guidelines provide a comprehensive framework for evaluating the financial effects of severe stress that may affect a covered institution and options it may take to remain viable under such stress. OCC examiners will assess the appropriateness and adequacy of a covered institution's ongoing recovery planning as part of the agency's regular supervisory activities.

According to the guidelines, a covered institution's management should review the bank's recovery plan at least annually and in response to material events and revise the plan to reflect material changes in the institution's size, risk profile, activities, complexity, and external threats. An institution's board, or committee of the board, should review and approve the plan at least annually.

An institution's recovery plan should be integrated into its overall risk governance framework. It should be specific to that institution, aligned with the institution's other plans, and coordinated with its holding company's recovery and resolution planning. A plan should include triggers alerting the institution to the risk or presence of severe stress, a wide range of credible options an institution could take to restore its financial strength and viability, and escalation and notification procedures.

Related Link

• Federal Register Notice (PDF)