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Supervisory Actions

Licensing Activities

The OCC’s licensing activities ensure that banks establish and maintain corporate structures in accordance with the principles of safe and sound banking as predicated by law and regulation. The OCC’s Licensing Division works with the agency’s legal and supervisory departments to render independent decisions supported by a record of facts and financial, supervisory, and legal analyses.

Corporate Application Activity

  FY 2017 FY 2018 FY 2018
  Applications received Approved Conditionally approved Denied Total
Branches 366 445 417 0 0 417
Capital/sub-debt 56 48 40 5 0 45
Change in bank control 9 6 1 5 0 6
Charters 2 6 2 3 0 5
Charter conversions* 7 10 5 8 0 13
Federal branches 3 0 0 0 0 0
Fiduciary powers 3 6 4 1 0 5
Mergers 63 52 57 1 0 58
Relocations 186 149 147 1 0 148
Reorganizations (national banks only) 25 31 24 6 0 30
Subsidiaries 52 30 26 4 0 30
Substantial change in assets 8 5 4 3 0 7
Mutual to stock conversions 1 2 1 1 0 2
Total 781 790 728 38 0 766

* Conversions to an OCC-regulated bank.

Licensing Activities

The OCC’s licensing activities ensure that banks establish and maintain corporate structures in accordance with the principles of safe and sound banking as predicated by law and regulation. The OCC’s Licensing Division works with the agency’s legal and supervisory departments to render independent decisions supported by a record of facts and financial, supervisory, and legal analyses.

 

  2014 2015 2016 2017 2018
Received 14 12 9 9 6
Acted on 9 11 9 7 6
Not disapproved 9 11 9 7 6
Disapproved 0 0 0 0 0
Withdrawn 0 1 0 0 0
Total 32 35 27 23 18

Licensing Activities

The OCC’s licensing activities ensure that banks establish and maintain corporate structures in accordance with the principles of safe and sound banking as predicated by law and regulation. The OCC’s Licensing Division works with the agency’s legal and supervisory departments to render independent decisions supported by a record of facts and financial, supervisory, and legal analyses.

Licensing Actions and Timeliness, National Banks and Federal Savings Associations, FY 2017 and FY 2018

    FY 2017 FY 2018
      Within target   Within target
  Target time frames in days Number of decisions Number Percent Number of decisions Number Percent
Branches 45/60 330 324 98 417 416 99.76
Capital/sub-debt 15/45 53 52 98 45 44 97.78
Change in bank control NA/120 7 5 71 6 5 83.33
Charters 45/60 1 1 100 5 4 80
Charter conversions 60/120 7 7 100 13 12 92.31
Federal branches NA/120 0 0 ---- 0 0 ----
Fiduciary powers 30/60 2 2 100 5 5 100
Mergers 45/60 70 64 91 58 55 94.83
Relocations 45/60 172 169 98 148 147 99.32
Reorganizations 45/60 22 21 95 30 29 96.67
Subsidiaries 30/60 49 47 96 30 24 80
Substantial change in assets NA/60 4 3 75 7 6 85.71
Mutual to stock conversions NA/60 2 2 100 2 2 100
Total   719 697 97 766 749 97.78

Note: Most of the decisions (96 percent in 2017 and 92 percent in 2018) were made in the district offices and large bank licensing under delegated authority. Decisions include approvals, conditional approvals, and denials. NA means not applicable.
Note: Certain filings qualify for “expedited review” and are subject to the shorter time frames listed. The longer time frames are for standard review of more complex applications. The target time frame may be extended if the OCC needs additional information to reach a decision, permits additional time for public comment, or processes a group of related filings as one transaction.

Licensing Activities

The OCC’s licensing activities ensure that banks establish and maintain corporate structures in accordance with the principles of safe and sound banking as predicated by law and regulation. The OCC’s Licensing Division works with the agency’s legal and supervisory departments to render independent decisions supported by a record of facts and financial, supervisory, and legal analyses..

Applications Presenting CRA Issues Decided, FY 2018

Bank, city, state Approval date Document number
First Tennessee Bank National Association, Memphis, Tenn. October 16, 2017 CRA decision No. 186
Associated Bank, National Association, Green Bay, Wis. January 4, 2018 CRA decision No. 187
E*Trade Savings Bank, Arlington, Va. March 23, 2018 CRA decision No. 188
City National Bank of Florida, Miami, Fla. April 2, 2018 CRA decision No. 189
First National Bank of Texas, Killeen, Texas May 3, 2018 CRA decision No. 190
Bank of America, National Association, Charlotte, N.C. August 20, 2018 CRA decision No. 191
Varo Bank, National Association, Salt Lake City, Utah August 31, 2018 CRA decision No. 1205
People’s United Bank, National Association, Bridgeport, Conn. September 12, 2018 CRA decision No. 192

Enforcement Actions

The OCC investigates, litigates, and takes enforcement actions to correct unsafe or unsound banking practices and failures in compliance. When warranted, the OCC refers potential criminal acts involving bank-affiliated parties to the U.S. Department of Justice and coordinates with other federal agencies on enforcement efforts involving banks.

The number of enforcement actions outstanding against banks has declined since peaking in 2010, reflecting overall improvement in banks’ risk management practices and economic condition. This trend continued this year. Compliance or operational failures, however, have resulted in a number of recent enforcement actions. These enforcement actions address a lack of appropriate governance, oversight, and risk management systems and controls.

OCC Enforcement Actions, FY 2018

Type of enforcement action Number Amount*
12 USC 1829 removal 80  
Bank civil money penalty 10 $726,194,245
Bank restitution to customers by order 1 $25,000,000
Capital restoration plan 2  
Cease-and-desist order 10  
Commitment letter 1  
Formal agreement 2  
Institution-affiliated parties' restitution to bank by order 1 $100,000
Letter of reprimand 5  
Memorandum of understanding 2  
Notices of charges filed 2  
Operating agreement 1  
Part 3 individual minimum capital ratio 2  
Personal cease-and-desist order 15  
Personal civil money penalty 28 $791,500
Prompt corrective action directive 1  
Regulatory conditions in writing 5  
Removal/prohibition 28  
Safety and soundness plan 4  
Supervisory letter 17  
Total 216 $752,085,745

* Includes only assessed penalties and does not include remediation to customers that the OCC may have required of the bank.

Matters Requiring Attention

The OCC communicates supervisory concerns to a bank’s board and management in the form of matters requiring attention (MRA). Supervisory concerns include practices that deviate from sound governance, internal control, or risk management principles. Such deviations, if not addressed appropriately, could adversely affect a bank’s condition or risk profile, result in violations of laws or regulations, and result in enforcement actions. The number of outstanding MRA concerns peaked in 2012 and declined steadily through December 31, 2017, to the lowest level since 2006. MRA concerns were relatively unchanged in 2018. During fiscal year 2018, OCC examinations cited concerns related mainly to credit, operational, and compliance risk.

Figure 1: Open MRA Concerns

The number of outstanding MRA concerns peaked at over 9500 in 2012 and declined steadily through December 31, 2017, to below 4000, the lowest level since 2006.

Note: Data for 2018 are as of September 30. All other data are as of calendar year-end.