OCC Reports on Key Risks Facing Federal Banking System — 2022-12-08

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Fall 2022. Economic growth slowed sharply in 2022, while high employment rates supported consumer spending and overall bank performance. Banks, in aggregate, remain well capitalized and with ample liquidity and sound credit quality, although macroeconomic headwinds are a concern. The OCC highlighted interest rate, operational, compliance and credit risks, among the key risk themes in the report. Highlights from the report include: Bank investment portfolios have been adversely impacted by the rising rate environment resulting in portfolio depreciation. Operational risk is elevated. Cyber threats continue to evolve, with threat actors continuing to target the financial services industry with ransomware and other attacks. Compliance risk remains elevated as banks continue to operate in an increasingly complex environment that includes significant regulatory changes.