The Office of the Comptroller of the Currency (OCC) announced this week that the nation\u00e2\u20ac\u2122s largest banks will need to develop a \u00e2\u20ac\u0153recovery plan\u00e2\u20ac\u009d to help it survive a crisis.<\/p>
The OCC\u00e2\u20ac\u2122s announcement signifies an effort by the agency to provide additional guidance beyond the FDIC and Federal Reserve\u00e2\u20ac\u2122s \u00e2\u20ac\u0153living wills,\u00e2\u20ac\u009d establishing a planning process that encourages the nation\u00e2\u20ac\u2122s largest banks to prepare and take action before they fail.\u00c2\u00a0 The FDIC and the Federal Reserve Board are mandated by the Dodd-Frank Act to require the biggest banks submit detailed plans on how they could be dismantled upon failure during a crisis. The OCC\u00e2\u20ac\u2122s proposal would require banks with assets of $50 billion or more to create detailed plans to survive<\/em> a crisis.<\/p> According to the proposed guidelines posted in the Federal Register, the OCC\u00e2\u20ac\u2122s guidance would require these large banks to show how different hypothetical crisis scenarios would affect the bank and its recovery.\u00c2\u00a0 OCC examiners would assess the plan, determining whether the bank has adequately prepared for a wide range of crises and whether the plan is properly integrated with the institution\u00e2\u20ac\u2122s overall risk management processes and crisis communications plan.<\/p> Read more about the OCC\u00e2\u20ac\u2122s proposed recovery plan\u00c2\u00a0in the\u00c2\u00a0federal register.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Office of the Comptroller of the Currency (OCC) announced this week that the nation\u00e2\u20ac\u2122s largest banks will need to develop a \u00e2\u20ac\u0153recovery plan\u00e2\u20ac\u009d to help it survive a crisis.The OCC\u00e2\u20ac\u2122s announcement signifies an effort by the agency to provide … Continue reading