WASHINGTON–The Office of the Comptroller of Currency (OCC) said it is undergoing an organizational restructuring that will remove the division dedicated to supervising community banks.

Effective June 2, the regulator will combine said it will combine Midsize and Community Bank Supervision with the Large Bank Supervision function to create the Bank Supervision and Examination function.

According to the OCC, Greg Coleman, senior deputy comptroller of Large Bank Supervision, will lead the newly formed Bank Supervision and Examination office, while Beverly Cole, who oversees Midsize and Community Bank Supervision, will retire after 43 years with the agency.

“The restructuring is designed to better address current challenges and streamline operations by aligning similar functions, and improve efficiency,” the OCC said in a statement.

It further stated the move to blend the supervision of large, midsize, and community banks will enhance collaboration and more effectively respond to bank-specific or emerging issues.

ICBA Critical of Move

In response, the Independent Community Bankers of America issued a statement urging the OCC to continue to maintain a dedicated function for community banks. It called the OCC change “counterintuitive.”

“This change marks a step in the wrong direction and contradicts the agency’s own stated commitment to tailoring supervision based on a bank’s size, complexity and risk profile — rather than applying a one-size-fits-all model,”  the ICBA said.  

The current acting Comptroller of the Currency is Rodney Hood, the former chairman of NCUA.