WASHINGTON — The Office of the Comptroller of the Currency said it has issued a final rule rescinding recovery planning guidelines for certain large banks, a move the agency said is intended to reduce regulatory burden and allow institutions to focus on core operations.
The rule eliminates guidelines that applied to insured national banks, federal savings associations and federal branches with at least $100 billion in assets, according to the OCC.
“Recovery planning guidelines that require large banks to engage in prescriptive planning activities do little to improve their ability to manage through stress and distract from the real work of running a safe and sound institution,” said Jonathan V. Gould in a statement. “Rescinding these guidelines helps ensure the banks we supervise can focus their resources on serving their customers and communities.”
Part of Broader Effort
The OCC said the change is part of a broader effort to identify and eliminate unnecessary regulatory requirements. The agency added that it still expects supervised institutions to maintain strong risk management practices, including contingency funding plans, to prepare for and respond to financial stress.
The rule does not apply to banks with less than $100 billion in average total consolidated assets and will have no impact on community banks, the OCC said.
The final rule will take effect 30 days after publication in the Federal Register, according to the press release.
