OCC Reports on Key Risks in Federal Banking System — 2024-12-16

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 2024. The OCC reported that the strength of the federal banking system remains sound. The OCC expects banks to remain diligent and adhere to prudent risk management practices across all risk areas. Continuous assessments of and improvements to risk management practices support banks’ efforts to guard against complacency and to build and enhance resiliency against potential future economic and operational challenges. The OCC highlighted credit, operational, compliance, and market risks, as the key risk themes in the report. Highlights from the report include: Commercial credit risk remains moderate and shows signs of stabilizing as risks are better identified, monitored, and controlled. Commercial credit risk drivers indicate the presence of pockets of risk specific to a lender’s region and lending market. The commercial real estate (CRE) office sector remains stressed.