Banks’ adoption of CECL, use of models addressed in OCC’s revised examiner booklet on credit card lending

The agency that charters national banks has revised its examiner booklet on credit card lending to reflect the adoption of the current expected credit loss (CECL) methodology by some banks and the increased use of models in credit card originations and risk management, according to a bulletin issued Thursday.

The Office of the Comptroller of the Currency (OCC), in Bulletin 2021-22, said the revised Credit Card Lending booklet of its Comptroller’s Handbook replaces version 1.2 of the “Credit Card Lending” booklet published on Jan. 6, 2017. Thursday’s bulletin rescinds OCC Bulletin 2015-41, “Credit Card Lending: Revised Comptroller’s Handbook Booklet and Rescissions,” which was issued on Nov. 4, 2015.

The agency said other revisions reflect changes to OCC issuances published and rescinded since this booklet was last issued; include clarifying edits regarding supervisory guidance, sound risk management practices, or legal language; and revise certain content for general clarity.

The Comptroller’s Handbook is prepared for use by OCC examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations, the agency said.

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