The OCC and FDIC will on Thursday unveil rules refocusing enforcement on
material financial risks, aiming to move away from checklist-style exams and
concentrate on risks that could threaten bank survival. Reforms include a
narrower, newly defined standard for unsafe or unsound practices and a higher
threshold for issuing matters requiring attention, the formal written notices
that compel corrective action. The agencies said the changes follow criticism
over their handling of SVB’s interest-rate and liquidity risks. The OCC will for
the first time publish its policy and procedures manual and will classify
violations as substantive or technical, with non-substantive breaches to be
handled outside the formal written-notice system.
