On December 23, the OCC issued and requested public comment on a proposed rule that would raise the asset threshold for its heightened standards guidelines, increasing the minimum threshold from $50 billion to $700 billion in average total consolidated assets. The OCC stated that the change would narrow the current number of banks (38) subject to the heightened standards to eight banks, focusing supervision on those banks whose size and risk profile present the greatest risks to the banking system.
The agency stated the NPRM aims to reduce regulatory burdens for banks below the new threshold, allowing them greater flexibility in designing risk governance frameworks tailored to their size and complexity. The proposal retained the OCC’s authority to apply the guidelines to banks below $700 billion if their operations are highly complex or pose heightened risk. The agency emphasized that excluded banks must still maintain robust risk management practices consistent with safety and soundness, and that the proposal would enable more efficient allocation of supervisory resources.
Comments on the proposed rule must be submitted by March 2.
[View source.]
