Office of the Comptroller of the Currency

Program Summary by Budget Activity

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 TO FY 2017

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $873,414 $993,905 $1,013,782 $19,878 2.00%

Regulate $103,574 $117,863 $120,221 $2,357 2.00%

Charter $18,992 $21,532 $21,963 $431 2.00%

Total Cost of Operations $995,910 $1,133,300 $1,155,966 $22,666 2.00%

FTE 3,805 3,955 3,955 0 0.00%

Summary

The Office of the Comptroller of the Currency 

(OCC) was created by Congress to charter 

national banks; oversee a nationwide system of 

banking institutions; and ensure national banks 

are safe and sound, competitive and profitable, 

and capable of serving in the best possible 

manner the banking needs of their customers. 

Effective on July 21, 2011, Title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act), 

transferred to the OCC the responsibility for 

the supervision of federal savings associations 

and rulemaking authority for all savings 

associations. 

As of September 30, 2015, the OCC 

supervised 1,010 national bank charters and 49

federal branches of foreign banks in the United 

States with total assets of approximately $10.4

trillion, and 416 federal savings associations 

(which include 165 mutual institutions) with

total assets of approximately $688 billion. In 

total, the OCC supervises approximately $11.1

trillion in financial institution assets. The 

average size and complexity of financial 

institutions continue to grow. This creates 

increasing and diverse challenges for the OCC. 

The OCC has established three goals outlined 

in its strategic plan that help support a strong 

economy for the American public: 1) A 

vibrant and diverse system of national banks 

and federal savings associations that supports a 

robust U.S. economy; 2) “One OCC” focused 

on collaboration, innovation, coordination, and 

process efficiency; 3) The OCC is firmly 

positioned to continue to operate 

independently and effectively into the future. 

To achieve its goals and objectives, the OCC 

organizes its activities under three programs: 

1) Supervise, 2) Regulate, and 3) Charter. 

Effective supervision and a comprehensive 

regulatory framework are the key tools that the 

OCC uses to ensure that national banks and 

federal savings associations operate in a safe

and sound manner and that they provide fair 

access to financial services and fair treatment 

of their customers. A robust chartering 

program allows new entrants into the financial 

services sector while ensuring that they have 

the necessary capital, managerial, and risk 

management processes to conduct activities in 

a safe and sound manner.

The OCC’s priorities focus on strengthening 

the resiliency of the institutions subject to its 

jurisdiction through its supervisory and 

regulatory programs and activities. A stronger 

and more resilient banking system directly 

supports three of the Department of the 

Treasury’s FY 2014-2017 (Treasury) strategic 

goals: 1) Promote domestic economic growth 

and stability while continuing reforms of the 

financial system; 4) Safeguard the financial 

system and use financial measures to counter 
national security threats; and 5) Create a 21st

-

century approach to government by improving 

efficiency, effectiveness, and customer 

interaction.

In supervising banks, the OCC has the power 

to:

• Examine banks;

• Approve or deny applications for new 

charters, branches, capital, or other 

changes in corporate or banking structure;

• Take supervisory and enforcement actions 

against banks that do not comply with laws 

and regulations or that otherwise engage in 

unsafe or unsound practices;

• Remove and prohibit officers and 

directors, negotiate agreements—both 

formal (i.e., public) and informal (i.e., nonpublic)—to change banking practices, and 

issue cease-and-desist orders as well as 

Civil Money Penalties (CMP); and

• Issue rules and regulations, legal 

interpretations, supervisory guidance, and 

corporate decisions governing investments, 

lending, and other practices.

Through on-site examinations, the OCC 

assesses whether national banks and federal 

savings associations appropriately identify, 

account for, and follow prudent strategies for 

problem assets; and maintain a strong 

corporate governance culture that fosters 

sound loan underwriting standards, properly 

aligned incentive compensation structures, and 

strong internal controls, risk management, and 

compliance functions. 

The OCC continues to encourage lenders to 

work with creditworthy borrowers who may be 

facing financial difficulties. The OCC 

continues to be actively involved in the 

residential foreclosure oversight process to 

ensure that all foreclosures are handled 

consistent with regulatory requirements. 

While assessing credit quality, adequacy of 

loan loss reserves, interest rate risk and capital 

adequacy, risk management practices have 

been and continue to be areas of focus. 

Operational risk issues – the risk of loss due to 

failures of people, processes, systems, and 

external events – have become an area of 

heightened risk and supervisory attention. 

Strong enterprise risk management processes 

have been and will continue to be a point of 

emphasis, particularly at larger institutions. In 

addition, the OCC continues to assess and 

address supervisory issues in the areas of fair 

lending, consumer protection, Bank Secrecy 

Act/Anti-Money Laundering, and information 

security.

Operations are funded primarily 

(approximately 97 percent) from semiannual 

assessments levied on national banks and 

federal savings associations. Revenue from 

investments in Treasury securities and other 

income comprise the remaining three percent 

of the OCC’s funding. 

The OCC does not receive congressional 

appropriations to fund any portion of its 

operations.

Explanation of Budget Activities

Supervise ($993,905,000 from 

revenue/offsetting collections)

The Supervise program consists of ongoing 

supervision and enforcement activities 

undertaken to ensure that each national bank 

and federal savings institution is operating in a 

safe and sound manner and is complying with 

applicable laws, rules, and regulations relative 

to the financial institution and the customers 

and communities it serves. Included are 

examinations and enforcement activities; 

resolution of disputes through a formal 

appeals process; ongoing monitoring of 

national banks and federal savings 

associations; and analysis of systemic risks 

and market trends in the federal banking 

system, the financial services industry, and the 

economic and regulatory environment.
Regulate ($117,863,000 from 

revenue/offsetting collections)

The Regulate program consists of ongoing 

activities that result in the establishment of 

regulations, policies, operating guidance, and 

interpretations of general applicability to 

national banks and federal savings 

associations. These regulations, policies, and 

interpretations may establish system-wide 

standards, define acceptable banking practices, 

provide guidance on risks and responsibilities 

facing national banks and federal savings 

associations, or prohibit (or restrict) banking 

practices deemed to be imprudent or unsafe. 

This includes the establishment of examination 

policies, handbooks, and interpretations for 

examiners as well as representation of the 

OCC’s regulatory authorities and 

interpretations in administrative, judicial, and 

congressional hearings.

Charter ($21,532,000 from revenue/offsetting 

collections)

The Charter program consists of ongoing 

activities that result in the chartering of 

national banks and federal savings associations 

as well as the evaluation of the permissibility 

of structures and activities of banks, federal 

savings association, and their subsidiaries. 

This includes the review and approval of new 

national bank and thrift charters, federal 

branches and agencies, mergers, acquisitions, 

conversions, business combinations, corporate 

reorganizations, changes in control, operating 

subsidiaries, branches, relocations, and 

subordinated debt issues.

Legislative Proposals

OCC has no legislative proposals.

OCC Performance by Budget Activity

Actual Actual Actual Target Target

Supervise Percent of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2

80.0 87.0 91.0 90.0 90.0

Supervise Percentage of National Banks and 

Federal Savings Associations That 

Are Categorized As Well 

Capitalized 

94.0 93.0 95.0 95.0 95.0

Supervise Percentage of National Banks and 

Federal Savings Associations With 

Consumer Compliance Rating of 1 

or 2

94.0 95.0 96.0 94.0 94.0

Supervise Rehabilitated National Banks And 

Federal Savings Associations As A 

Percentage Of Problem National 

Banks One Year Ago (CAMEL 3,4, 

or 5)

34.0 39.0 39.0 40.0 40.0

Supervise Total OCC Costs Relative To 

Every $100,000 in Bank And 

Federal Savings Associations 

Assets Regulated ($)

9.99 9.75 9.37 10.20 10.20

Charter Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes

97.0 98.0 97.0 95.0 95.0

Key: DISC – Discontinued
Description of Performance

The OCC’s Supervision Program specifically 

supports the following Treasury Objectives:

1.3: Complete implementation of financial 

regulatory reform initiatives and continue 

monitoring the markets for threats to stability;

1.4: Facilitate commerce by providing trusted 

and secure U.S. currency, products, and 

services for use by the public;

4.3: Improve the cybersecurity of our Nation’s 

financial sector critical infrastructure; and

4.4: Protect the integrity of the financial 

system by implementing, promoting, and 

enforcing anti-money laundering and 

counterterrorism financing standards.

The OCC charters, regulates and supervises all 

national banks and federal savings 

associations, as well as supervises federal 

branches and agencies of foreign banks. The 

primary goal of the OCC’s Supervision 

Program is to ensure that these institutions 

operate in a safe and sound manner and in 

compliance with laws requiring fair treatment 

of their customers and fair access to credit and 

financial products. The OCC’s Supervision 

Program supports the implementation of the 

financial regulatory reform initiatives 

including those in the Dodd-Frank Wall Street 

Reform and Consumer Protection Act as well 

as other regulatory initiatives designed to 

strengthen the nation’s federal banking 

system. The OCC also monitors risks and 

threats to the stability of the federal banking 

system through its regular examinations of the 

institutions it supervises and other monitoring 

programs such as its Semi-annual Risk 

Perspectives Report, participation in the 

Shared National Credit Program, and its Credit 

Underwriting Survey. 

The overall objective of the OCC’s 

Supervision Program supports facilitating 

commerce through the goal of ensuring the 

safety and soundness of the federal banking 

system. Through its Supervision Program the 

OCC supports facilitating commerce through 

the goal of ensuring the safety and soundness 

of the federal banking system. The OCC has 

taken a number of steps to improve the 

cybersecurity of the nation’s financial sector 

critical infrastructure including organizing 

webinars for community bankers. The agency 

continues to update examiner handbooks, 

procedures, and training materials to ensure 

that, as threats evolve, all national banks and 

federal savings associations can identify cyber 

risks and strengthen their risk management and 

control systems. The OCC is an active 

member of the Financial Services Information 

Sharing and Analysis Center, which provides 

greater real-time insight into a broad range of 

potential threats to the industry and the ability 

to assist, when appropriate, in a coordinated 

response with other government 

agencies. Finally, the OCC supports 

protecting the integrity of the financial system 

through its examinations of compliance with 

BSA/AML and through the initiation of 

enforcement actions for non-compliance with 

BSA/AML laws and regulations.

The Federal Deposit Insurance Act established 

a system that classifies insured depository 

institutions into five categories (wellcapitalized, adequately capitalized, 

undercapitalized, significantly 

undercapitalized, and critically 

undercapitalized) based on their capital levels 

relative to their risks. Through September 30, 

2015, 95 percent of national banks and federal 

savings associations were classified as well 

capitalized.

The composite CAMELS (Capital adequacy, 

Asset quality, Management, Earnings, 

Liquidity, and Sensitivity to market risk) 

rating reflects the overall condition of a bank. 

Bank regulatory agencies use the Uniform 

Financial Institutions Rating System, 

CAMELS, to provide a general framework for 

evaluating all significant financial, operational, 
and compliance factors inherent in a bank. 

The rating scale is 1 through 5 of which 1 is 

the highest rating granted. CAMELS ratings 

are assigned at the completion of every 

supervisory cycle or when there is a significant 

event leading to a change in CAMELS. 

Through September 30, 2015, 91 percent of 

national banks and federal savings associations 

earned composite CAMELS rating of either 1 

or 2.

Problem banks ultimately can reach a point at 

which rehabilitation is no longer feasible. The 

OCC’s early identification and intervention 

with problem banks can lead to successful 

remediation of these banks. The OCC 

recommends corrective actions to problem 

banks for improving their operations and, as a 

result, 39 percent of banks with composite 

CAMELS ratings of 3, 4, or 5 one year ago 

have improved their ratings to either 1 or 2 this

year. The OCC continues to focus on the early 

identification and rehabilitation of problem 

institutions.

To ensure fair access to financial services and 

fair treatment of bank customers, the OCC 

evaluates a bank’s compliance with consumer 

laws and regulations. Bank regulatory 

agencies use the Uniform Financial 

Institutions Rating System, Interagency 

Consumer Compliance Rating, to provide a 

general framework for assimilating and 

evaluating significant consumer compliance 

factors inherent in a bank. Each financial 

institution is assigned a consumer compliance 

rating based on an evaluation of its present 

compliance with consumer protection and civil 

rights statutes and regulations, and the 

adequacy of its operating systems designed to 

ensure continuing compliance. Ratings are on 

a scale of 1 through 5 in increasing order of 

supervisory concern. National banks and 

federal savings associations continue to show 

strong compliance with consumer protection 

regulations with 96 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2015.

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

and federal savings associations to complete 

various corporate transactions and introduce 

new financial products and services. Delays in 

providing prompt decisions on applications 

and notices can deprive a bank of a 

competitive or business opportunity, create 

business uncertainties, or diminish financial 

results. Time frames have been established for 

completing each type of application and 

notice. The OCC completed 97 percent of 

applications and notices within the time 

standard through September 30, 2015.

The OCC monitors the efficient use of its 

resources by measuring Total OCC Costs 

Relative to Every $100,000 in Bank Assets 

Regulated. This measure reflects the 

efficiency of its operations while meeting the 

increasing supervisory demands of a growing 

and more complex financial system. This 

measure supports the OCC’s strategic goal of 

efficient use of agency resources. The OCC’s 

ability to control its costs while ensuring the 

safety and soundness of national banks and 

federal savings associations benefits all 

national bank and federal savings association 

customers. The OCC will continue its efforts 

to ensure that resources are used prudently and 

that programs are carried out in a cost effective 

manner.