Office of Comptroller of the Currency

Program Summary by Budget Activity

(Dollars in thousands)

Budget Activity FY 2010 FY 2011 1/ FY 2012 2/ FY 2010 to FY 2012

Actual Estimated Estimated $ Change % Change

 Supervise $618,254 $680,090 $900,836 $282,582 45.7%

 Regulate $97,735 $107,511 $111,936 $14,201 14.5%

 Charter $24,434 $26,878 $27,984 $3,550 14.5%

Total Cost of Operations $740,423 $814,479 $1,040,756 $300,333 40.6%

Reimbursable FTE 3,101 3,140 3,976 875 28.2% 1) It is anticipated that for the majority of FY 2011, the OCC will not be regulating the Federal savings associations; accordingly, 

the FY 2011 estimates only reflect the cost of regulating the National Banking System. Figures are subject to revision once the 

personnel realignment provisions of the Dodd-Frank Act are implemented.

(2) FY 2012 estimates include the cost of regulating the National Banking System and Federal savings associations. Figures are 

subject to revision once the personnel realignment provisions of the Dodd-Frank Act are implemented.

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. 

As the regulator of national banks, the OCC 

has established four strategic goals outlined in 

its strategic plan that help support a strong 

economy for the American public: 1) assuring 

the safety and soundness of the institutions 

subject to its jurisdiction; 2) fair access to 

financial services and fair treatment of bank 

customers; 3) a flexible legal and regulatory 

framework that enables the institutions subject 

to its jurisdiction to provide a full competitive 

array of financial services; and 4) an expert, 

highly motivated, and diverse workforce that 

makes effective use of OCC resources. The 

OCC organizes its activities under three 

programs: (1) Supervise, (2) Regulate, and (3) 

Charter, to achieve the goals and objectives.

As of September 30, 2010, the OCC 

supervised 1,487 national bank charters and 51 

federal branches of foreign banks in the United 

States. Total assets under the OCC’s

supervision are approximately $8.6 trillion or 

approximately 70 percent of total United 

States commercial banking assets. As a result 

of the Dodd-Frank Act, in FY 2012 the OCC 

anticipates supervising approximately 700 

Federal savings associations with assets 

currently totaling approximately $0.9 trillion. 

The average size and complexity of the 

institutions in the national banking system 

continue to grow. This combined with OCC’s 

supervision of Federal savings associations 

and responsibility for the Home Owners’ Loan 

Act creates increasing and diverse challenges 

for the OCC. 

The OCC’s priorities focus on strengthening 

the resiliency of the institutions subject to its 

jurisdiction through its supervisory and 

regulatory programs and activities. Through 

on-site examinations, OCC will work to ensure 

that national banks and Federal savings 

associations appropriately identify, account 

for, and follow prudent strategies for problem 

assets; instill 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 will be 

identifying and resolving potential problem 

banks at the earliest possible stage; 

encouraging national banks and Federal 

savings associations to meet the needs of 

credit worthy borrowers, including appropriate 

and effective residential mortgage 

modification programs, and ensuring that they 

comply with the Community Reinvestment 

Act and the Bank Secrecy Act/Anti-Money 

Laundering (BSA/AML) and USA PATRIOT 

Act requirements; and further enhancing 

OCC’s supervisory analytical tools. 

A major focus of the OCC’s supervisory, 

regulatory, and administrative programs in 

FYs 2011-2012 will be implementing 

applicable provisions of the Dodd-Frank Act. 

The OCC will work closely within the 

Treasury and other federal regulatory agencies 

on these initiatives, including developing and 

issuing implementing rulemakings on a broad 

range of topics, including regulatory capital; 

permissible proprietary trading, hedge fund, 

and private equity fund investments (the socalled Volcker rule); derivative margin 

requirements; executive compensation; risk 

retention standards for securitizations; and real 

estate appraisals. Similarly, the OCC is 

working to provide smooth transitions for the 

transfer and integration of various regulatory 

and supervisory functions across and among 

the agencies. These efforts will include the 

transfer of certain supervisory responsibilities 

and personnel associated with consumer 

compliance activities to the Consumer 

Financial Protection Bureau (CFPB) and the 

integration of the Office of Thrift Supervision 

(OTS) functions and personnel into the OCC.

In FY 2011, an estimated $814,479 is needed

to fund ongoing OCC operations and address 

program priorities effectively. Estimated OCC 

revenue for FY 2011 is $820,200. 

Operations are funded primarily 

(approximately 97 percent) from semiannual 

assessments levied on national banks, and for 

FY 2012, 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.

OCC FY 2012 Budget Highlights

(Dollars in thousands)

Budget Estimate Amount

FY 2010 Actual $740,423

FY 2011 Estimated $814,479

Changes to Base:

Maintaining Current Levels (MCLs): $4,564

Maintaining Current Levels $4,564

Subtotal FY 2012 Changes to Base $4,564

Total FY 2012 Base $819,043

Program Changes:

Program Increases: $221,713

Adjustment $221,713

Subtotal FY 2012 Program Changes $221,713

Total FY 2012 Estimate $1,040,756

Explanation of Budget Activities

Supervise ($680,090,000 from reimbursable 

programs)

The Supervise program consists of ongoing 

supervision and enforcement activities 

undertaken to ensure that each national bank is 

operating in a safe and sound manner and is 

complying with applicable laws, rules, and 

regulations relative to the bank and the 

customers and communities it serves. 

Included are bank examinations and 

enforcement activities; resolution of disputes 

through the National Bank Appeals process; 

ongoing monitoring of banks; 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 ($107,511,000 from reimbursable 

programs)

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. These regulations, policies, 

and interpretations may establish system-wide 

standards, define acceptable banking practices, 

provide guidance on risks and responsibilities 

facing national banks, 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 ($26,878,000 from reimbursable 

programs)

The Charter program consists of ongoing 

activities that result in the chartering of 

national banks as well as the evaluation of the 

permissibility of structures and activities of 

national banks and their subsidiaries. This 

includes the review and approval of new 

national bank charters, federal branches and 

agencies, mergers, acquisitions, conversions, 

business combinations, corporate 

reorganizations, changes in control, operating 

subsidiaries, branches, relocations, and 

subordinated debt issues.

Capital Investments Summary

Central Application Tracking System (CATS)

- This initiative will significantly improve the 

accuracy, tracking, monitoring, recording, and 

reporting of the applications and notices by the 

Licensing and Community Affairs 

Departments. 

Personnel Administration and Security System 

(PASS) - This initiative will improve and 

automate core personnel security processes, 

including on-boarding and off-boarding. The

PASS initiative will bring the OCC into 

compliance with audit and Homeland Security 

Presidential Directive 12 (HSPD-12)

requirements. 

OCC Performance by Budget Activity

Budget Activity Performance Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

Prevented or mitigated 

financial and economic 

crises

Percent of National Banks 

With Composite CAMELS 

Rating 1 or 2 (Oe)

92.0 82.0 70.0 90.0 90.0

Prevented or mitigated 

financial and economic 

crises

Percentage of National 

Banks with Consumer 

Compliance Rating of 1 or 2 

(Oe)

97.0 97.0 95.0 94.0 94.0

Prevented or mitigated 

financial and economic 

crises

Rehabilitated National Banks 

as a Percentage of Problem 

National Banks One Year 

Ago (CAMEL 3,4, or 5) (Oe)

47.0 29.0 23.0 40.0 40.0

Improved economic 

opportunity at home 

and abroad

Percentage of National 

Banks that are Categorized 

as Well Capitalized (Oe)

99.0 86.0 90.0 95.0 95.0

Charter Percentage of Licensing Applica 

and Notices Completed within 

Established Timeframes (Oe)

95.0 95.0 96.0 95.0 95.0

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, M - Management/Cust. 

Satisfaction, DISC - Discontinued, and B - Baseline
Description of Performance

The Federal Deposit Insurance Act established 

a system that classifies insured depository 

institutions into five categories (well 

capitalized, adequately capitalized, 

undercapitalized, significantly 

undercapitalized, and critically 

undercapitalized) based on their capital levels 

relative to their risks. Through September 30, 

2010, 90 percent of national banks 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, 2010, 70 percent of 

national banks 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. 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.

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. 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 continue 

to show strong compliance with consumer 

protection regulations with 95 percent earning 

a consumer compliance rating of either 1 or 2 

through September 30, 2010.

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

to complete various corporate transactions and 

introduce new financial products and services. 

Time frames have been established for 

completing each type of application and 

notice. The OCC completed 96 percent of 

applications and notices within the time 

standard through September 30, 2010.

The OCC implemented a performance 

measure—Total OCC Costs Relative to Every 

$100,000 in Bank Assets Regulated—that 

reflects the efficiency of its operations while 

meeting the increasing supervisory demands of 

a growing and more complex national banking 

system. This measure supports the OCC’s 

strategic goal of efficient use of agency 

resources.