The Federal Reserve Board, the FDIC, the National Credit Union Administration and the OCC issued final guidance and a related policy statement on financial institutions' credit risk review and accounting for credit loss.
The Federal Reserve Board, FDIC and OCC found that the share and amount of loan commitments (a/k/a "special mention and classified commitments") with the lowest supervisory ratings experienced a slight increase within the last year.
The New York State Department of Financial Services extended the deadline for regulated entities to submit their plans to address the end of LIBOR and the associated risks. The deadline was extended to March 23, 2020.
In the latest issue of Supervisory Insights , the FDIC Division of Risk Management Supervision provided "illustrat[ions]" of "strong credit grading systems that incorporate clearly identifiable processes and a sound governance framework."
In a semiannual risk report, the Office of the Comptroller of the Currency reported on the operating environment, performance, emerging risk, trends and supervisory actions at national banks and federal savings associations.
The Office of the Comptroller of the Currency reminded national banks, federal savings associations, and federal branches and agencies that expressions of informal or implied support from foreign governments should be viewed as a mitigating factor when evaluating a borrower's credit risk.
In testimony before the House Financial Services Committee, Comptroller of the Currency Joseph Otting identified the top priorities of the Office and detailed operational and compliance risks faced by the banking industry.