Clarifying exam procedures for community banks is the aim of four bulletins released Monday by the national bank regulator, which include guidance to banks and proposed rulemakings.
The Office of the Comptroller of the Currency (OCC) said the two bulletins on clarifying exam procedures, and two notices of proposed rulemaking on rescinding one rule and another on a rule to expedite licensing procedures for community banks, said the actions are intended to “tailor our risk-based supervision to focus on material financial risk.”
Under exam procedures, the agency said it is removing fixed examination requirements for community banks through one bulletin. Instead, the agency said, it is tailoring the examination scope and frequency to be consistent with risk-based supervision.
In a second bulletin, the agency said it is clarifying expectations that community banks “should tailor model risk management practices commensurate with the bank’s risk exposures, its business activities, and the complexity and extent of its model use.”
The two proposed rules would both rescind a rule and advance a new one. The recission would eliminate the OCC’s Fair Housing Home Loan Data System regulation. The agency said that would remove largely duplicative data collection requirements for national banks. “The proposal would eliminate regulatory burden for banks without having a material impact on the availability of data necessary for the OCC to conduct its fair housing-related supervisory activities,” OCC said.
The second proposal, OCC said, would broaden eligibility for expedited or reduced licensing procedures to community banks. “This proposal would reduce the burden for community banks and tailor requirements to the size and risk profile of an institution,” the agency said. “These proposed changes are intended to facilitate an increase in corporate activities and transactions by community banks.”
Bulletin 2025-24, “Examinations: Frequency and Scope”
Bulletin 2025-25, “Retail Nondeposit Investment Products”
Bulletin 2025-26, “Model Risk Management: Clarification for Community Banks”
Notice of Proposed Rulemaking, Fair Housing Home Loan Data System (PDF)
Bulletin 2025-28, “Community Bank Licensing Amendments; Notice of Proposed Rulemaking”
Notice of Proposed Rulemaking, Community Bank Licensing Amendments (PDF)
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