Commercial Credit Supervision
Commercial Credit Supervision at the OCC
The OCC supervises all facets of commercial lending activities within national banks and federal savings associations:
- The OCC monitors institutions’ credit risk management processes and control functions, evaluates the quality of lending policies, and monitors overall portfolio conditions.
- The OCC conducts transactional testing of individual loans to assess the quality of underwriting standards, adherence to internal credit policies, and overall risk selection.
- The OCC reviews institutions’ methodology and assumptions used in the calculation of the allowance for loan and lease losses to ensure that the balance is sufficient to provide for inherent losses embedded within the loan portfolio.
- The OCC evaluates bank management’s ability to identify, manage, monitor, and control the credit risk within the portfolio. The OCC ensures that credit risks taken are prudent and commensurate with safe and sound banking practices.
- OCC examiners must have expertise in evaluating or controlling credit risk practices.
If you are highly competent in the assessment and/or control of credit risk management, with a proven ability to identify and resolve problems, and have outstanding communication skills, then you should consider a career in supervision with the OCC.
Opportunity: Commercial Credit Bank Examiner
The OCC provides opportunities for commercial credit risk specialists in the Large Bank Supervision Department, the Midsize and Community Bank Supervision Department, and at the OCC Headquarters in the Bank Supervision Policy Department. Each of these opportunities requires a different level of expertise and specialization within the capital markets spectrum. Large banks supervised by the OCC generally have assets of $50 billion to $3 trillion, with on-site examination teams in cities across the country. The OCC supervises midsize and community banks with assets up to $50 billion from examination teams located in field offices across the country. The Bank Supervision Policy Department develops and issues guidance and supervisory policies to address sound practices and emerging risks, as well as compliance with applicable laws and regulations. This department collaborates with the other federal banking agencies to develop consistent examination procedures and supervisory approaches.
Whether you are actively seeking a career change, or are content with your current position, you owe it to yourself to discover whether a career in commercial credit supervision is right for you.