OCC issues final rule on recovery requirements for large banks

The Office of the Comptroller of the Currency issued a final rule on the guidelines for recovery planning by large insured national banks, Federal savings associations and Federal branches of foreign banks that fall under $100 billion or more in average total consolidated assets.

The OCC noted that guidelines came about after the crises that were demonstrated following severe stress on large, complex financial institutions. “This experience highlighted the importance of large, complex banks having strong risk governance frameworks, including plans for how to respond quickly and effectively to, and recover from, the financial effects of severe stress. The agency recognized that this type of advance planning would reduce a bank’s risk of failure and increase the likelihood that it would return to a position of financial strength and viability following severe stress.”

The final rule will go into effect on January 1, 2025. See more on the final rule here.