OCC’s Semiannual Risk Perspective Highlights Key Risks in Federal Banking System — 2026-05-07

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in the Semiannual Risk Perspective for Spring 2026. Bank earnings improved in 2025, supported by loan growth and a decline in funding costs. Balance sheets remain strong and credit risk within the federal banking system remains manageable. Earnings releases for the first quarter of 2026 indicate that these trends have generally persisted. The OCC highlighted credit, market, operational, and compliance risks, as key risk themes in the report. The report also discussed innovation. Highlights from the report include: Credit conditions and refinancing risk in certain segments of commercial real estate lending and private credit markets warrant ongoing monitoring. Modest increases in past-due loans have been observed in some consumer portfolios. However, OCC-supervised banks have manageable exposures to borrowers with weaker credit profiles. Balance sheets remain strong, with capital ratios and liquidity high by historical standards.