OCC Reports on Key Risks Facing Federal Banking System — 2022-06-23

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 Spring 2022. As banks continue to navigate the operational- and market-related impacts of the pandemic along with substantial government stimulus, current geopolitics have tightened financial conditions and increased downside risk to economic growth. The OCC highlighted operational, compliance, interest rate, and credit risks, among the key risk themes in the report. Highlights from the report include: Bank financial performance faces challenges from inflation, a rising interest rate environment, and other implications related to the pandemic and geopolitical events. Operational risk is elevated as banks respond to an evolving and increasingly complex operating environment. Cyber risk remains elevated. Compliance risk is heightened as banks navigate the current operational environment, regulatory changes, and policy initiatives.