There were three noteworthy regulatory and compliance updates for banks and credit unions in December of 2022. Below are the details on these changes and how they affect you and your institution.
OCC Releases the Semiannual Risk Perspective for Fall 2022
The OCC released their Semiannual Risk Perspective for Fall 2022. The key risk themes are as follows:
· Interest Rate Risk: Bank investment portfolios have been adversely affected by the rising rate environment, resulting in portfolio depreciation.
· Compliance Risk: Compliance risk remains elevated as banks continue to operate in an increasingly complex environment.
· Operational Risk: Operational risk is elevated as banks respond to an evolving and increasingly complex operating environment. Cyber threats continue to evolve, with threat actors continuing to target the financial services industry with ransomware and other attacks.
· Credit Risk: The quantity of credit risk in commercial and retail loan portfolios is moderate and is attributed to growth and utilization trends and economic uncertainty. Loan portfolio performance has been resilient, but signs of potential weakening in some segments warrant careful monitoring.
Why Is This Important to Me?
Review these risks and ensure your institution has adequate training in these areas to protect the institution from the risks.
Federal Reserve Board Requests Comment on Proposed Principles for Climate-Related Financial Risk Management for Large Financial Institutions
The Federal Reserve Board is requesting comment on proposed Principles for Climate-Related Financial Risk Management for Large Financial Institutions. The principles would apply to organizations with more than $100 billion in total assets. The principles cover six areas:
· Governance
· Policies & Procedures
· Strategic Planning
· Risk Management
· Data & Reporting
· Scenario Analysis
Why Is This Important to Me?
Share this information with colleagues who may be interested in commenting.
HUD Announces Loan Limits for 2023
HUD announced new loan limits for 2023. Loan limits for most of the country will increase in the coming year.
Why Is This Important to Me?
Share this information with those colleagues involved in mortgage lending.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.