OCC overhauls community, midsize bank supervision
The Office of the Comptroller of the Currency will overhaul its supervision of community and midsize banks, including designating one deputy comptroller responsible for overseeing novel banks and technology service providers, according to a memo obtained by American Banker.
The changes will put a bigger emphasis on supervising fintech and cryptocurrency, as well as creating flexibility the agency might need to account for consolidation of small banks. The reorganization will take effect Oct. 1.
This is a significant restructuring of the midsize and community bank department, said Daniel Stipano, a partner at Davis Polk and a 30-year veteran of the OCC. Its recognizing the changes that have taken place in the industry, particularly those due to technology and consolidation.
The OCC was not able to provide an official for an interview by press time.
The agency is designating a deputy comptroller for the supervision of novel banks and technology service providers, according to the memo.
This will provide a coordinated and consistent approach to supervising these institutions, which have specialized and unique business models, the memo said.