OCC Reports On Federal Banking System Risks

In its semiannual risk perspective, the OCC highlighted the operational, credit compliance and strategic risks impacting the federal banking system.

The OCC described risks affecting national banks and federal savings associations based on data gathered as of June 30, 2021.

The OCC concluded that:

• banks are showing resilience in the current environment with satisfactory credit quality and strong earnings; weak loan demand and low net interest margins continue to weigh on performance;
• the response to the delta variant is expected to contribute to slower gross domestic product growth in the second half of the year; the deceleration caused by the variant's spread is not expected to be large due to increased business activity;