OCC Finalizes Heightened Standards For Large Financial Institutions

On September 2, 2014, the OCC published final guidelines to strengthen certain governance and risk management practices of insured national banks, insured federal savings associations, and insured federal branches of foreign banks with $50 billion or more in average total consolidated assets. The final guidelines also apply to an OCC-regulated institution with less than $50 billion in average total consolidated assets if that institution's parent company controls at least one other covered institution. Pursuant to the guidelines, these large financial institutions should establish and comply with a written risk governance framework to manage its risk-taking activities. The guidelines set forth minimum standards for the institutions' boards of directors to oversee the risk governance framework.