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  1. #1

    Insight: U.S. OCC’s “heightened expectations” standards for bank governance, and how to meet them

    NEW YORK, Mar. 21 (Thomson Reuters Accelus) – Proposed risk standards for banks regulated by the Office of the Comptroller of the Currency (OCC) will expose top executives and directors of federally chartered insured institutions to greater accountability for any legal, risk or compliance shortcomings.

  2. #2

    Insight: U.S. OCC’s “heightened expectations” standards for bank governance, and how to meet them

    The OCC proposed the standards in January as way to broaden and enforce the application of its “heightened expectations” for bank stability. The expectations were issued in 2010, in response to the financial crisis. The proposed guidelines’ focus on top bank governance directly aims to limit ”accountability risk,” or the risk that a leadership not held to the consequences of its decisions can endanger an institution.

  3. #3

    Insight: U.S. OCC’s “heightened expectations” standards for bank governance, and how to meet them

    Under the proposed guidelines, the bank’s board of directors and the executive management team will be accountable for raising the standards for the organization’s risk-management practices. The board and CEO must ensure that the organization has in place a suitable governance risk framework and a business culture that adequately addresses conduct risk.

  4. #4

    Insight: U.S. OCC’s “heightened expectations” standards for bank governance, and how to meet them

    Furthermore, at a personal level, members of the board must not only show they can understand and articulate the risks facing the organization, but they must also possess the appropriate qualifications and demonstrate decision-making abilities to question the direction the organization undertakes to manage its risks.

  5. #5

    Insight: U.S. OCC’s “heightened expectations” standards for bank governance, and how to meet them

    Safety and soundness issues which examiners have often addressed through best-practices guidance and recommendations as “matters requiring attention,” or MRAs, can under the new proposal trigger more serious enforcement actions, civil money penalties, and possible criminal referral to the Department of Justice. Once these risk standards are finalized and become effective, non-compliance with the provisions can be cited as a violation of law.

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