Office of the Comptroller of the Currency (OCC)

Program Summary by Budget Activity

Dollars in Thousands

 FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $924,417 $877,800 $895,350 ($29,067) -3.14%

Regulate $125,416 $119,200 $121,580 ($3,836) -3.06%

Charter $27,338 $26,000 $26,520 ($818) -2.99%

Total Cost of Operations $1,077,171 $1,023,000 $1,043,450 ($33,721) -3.13%

FTE 3,656 3,782 3,782 126 3.45%

Summary

The 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. 

Pursuant to Title III of the Dodd-Frank Act, on 

July 21, 2011 the OCC assumed the 

responsibility for the supervision of federal 

savings associations and rulemaking authority 

for all federal savings associations. 

The OCC supervises 1,295 national bank 

charters, 48 federal branches of foreign banks, 

and 546 federal savings associations 

(including 194 mutual institutions) in the 

United States with total assets of 

approximately $10 trillion as of December 31, 

2012. The average size and complexity of

financial institutions continue to grow. This 

creates increasing and diverse challenges for 

the OCC. 

The OCC has established four goals outlined 

in its strategic plan that help support a strong 

economy for the American public: 1) A safe 

and sound system of national banks and 

federal savings associations; 2) Fair access to 

financial services and fair treatment of national 

bank and federal savings association 

customers; 3) A flexible legal and regulatory 

framework that enables national banks and 

federal savings associations to provide a full, 

competitive array of financial services 

consistent with statutory and prudential safety 

and soundness constraints; and 4) A 

competent, highly motivated, and diverse 

workforce that makes effective use of OCC 

resources. 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 out of five of the Department of 

the Treasury’s (Treasury) strategic goals: 1) 

Repair and reform the financial system and 

support the recovery of the housing market;

2) Enhance U.S. competitiveness and promote 

international financial stability and balanced 
global growth; and 3) Protect our national 

security through targeted financial actions.

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. Other supervisory 

priorities are identifying and resolving 

potential problem banks at the earliest possible 

stage; encouraging national banks and federal 

savings associations to meet the needs of 

creditworthy borrowers, including appropriate 

and effective residential mortgage 

modification programs; ensuring that 

institutions comply with the Community 

Reinvestment Act (CRA), the Bank Secrecy 

Act/Anti-Money Laundering (BSA/AML), and 

the Uniting and Strengthening America by 

Providing Appropriate Tools Required to 

Intercept and Obstruct Terrorism (USA 

PATRIOT) Act requirements and that they 

maintain strong controls and risk management 

processes for information security; and further 

enhancing the OCC’s supervisory analytical 

tools. 

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 ($877,800,000 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 national banking 

system or groups of national banks, the 

financial services industry, and the economic 

and regulatory environment.

Regulate ($119,200,000 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 ($26,000,000 from revenue/offsetting 

collections)

The Charter program consists of ongoing 

activities that result in the chartering of 

national banks and federal savings institutions 

as well as the evaluation of the permissibility 

of structures and activities of banks, federal 

savings associations, and their subsidiaries. 

This includes the review and approval of new 

national bank and federal saving association

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

The OCC has no legislative proposals.

OCC Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

Supervise Percentage of National Banks and Federal 

Savings Associations that are Categorized as 

Well Capitalized

91 93 92 95 95

Supervise Percentage of National Banks and Federal 

Savings Associations with Consumer 

Composite Rating CAMELS of 1 or 2

72 75 76 90 90

Supervise Rehabilitated National Banks and Federal 

Savings Associations as a Percentage of 

Problem National Banks On Year Ago 

(CAMEL 3,4, or 5)

22 22 27 40 40

Supervise Percent of National Banks and Federal 

Savings Associations with Consumer 

Compliance Rating of 1 or 2

96 96 93 94 94

Charter Percentage of Licensing Applications and 

Notices Completed within Established 

Timeframes

96 97 98 95 95

Key: DISC - Discontinued and B - Baseline

Description of Performance

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, 

2012, 92 percent of national banks and federal 

savings associations were classified as well 

capitalized, which is slightly below the target 

of 93 percent for FY 2012. National banks’ 

and federal savings associations’ capital has 

remained at this consistently high level for the 

past several years.

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, 2012, 76 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, 23 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. As with other measures, this target 

benchmark has been adversely affected by the 

underlying economic conditions facing the 

banking industry. 

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 bank 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 93 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2012.

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 98 percent of 

applications and notices within the time 

standard through September 30, 2012.

All FY 2011 performance measures do not 

include federal savings associations. 

However, beginning with FY 2012, federal 

savings associations and former OTS 

operations were incorporated into OCC’s 

performance measures.