OCC Bulletin 2026-49 | September 30, 2026

Concentrations of Credit: Revised Comptroller’s Handbook Booklet and Rescissions

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) issued today version 3.0 of the “Concentrations of Credit” booklet of the Comptroller’s Handbook.

Rescissions

This booklet replaces version 2.0 of the booklet of the same title. Also rescinded is OCC Bulletin 2020-90, “Concentrations of Credit: Revised Comptroller’s Handbook Booklet and Rescissions,” which transmitted version 2.0 of the booklet.

Note for Community Banks

This booklet provides information to inform and educate examiners about concentrations of credit in banks¹ of all sizes with emphasis on ranges of practices for varying sizes, complexities, and risk profiles. Examiners determine which expanded procedures to use, if any, based on risk.

Highlights

The revised booklet

continues to define a concentration of credit as the sum of direct, indirect, or contingent obligations exceeding 25 percent of a bank’s tier 1 capital plus the allowance for credit losses.
was reorganized to keep similar information together.
includes more comprehensive discussion of risks associated with concentrations of credit under the “Risks Associated With Concentrations of Credit” section. Content related to quantity of risk was moved from other sections of the booklet to this section.
includes clarity regarding ranges of practices for banks of with different sizes, complexities, and risk profiles.
clarifies the relationship between correlations and concentrations.
includes new information about securitizations and the relationship to concentration levels and the quantity of concentration risk.
adds clarity regarding risk management practices relative to determining aggregate risk.

Background

The Comptroller’s Handbook is designed to

inform and educate examiners about the subject matter reviewed—including associated risks and appropriate risk management practices.
guide examiners in performing consistent, high-quality, professional bank supervision across the spectrum of OCC-supervised banks.
provide examiners with the information necessary to plan and coordinate examinations, identify concerns, and conduct appropriate follow-up.

This booklet is designed for use by examiners and is made available to the public to provide transparency into the OCC’s supervisory process. Refer to the “Foreword” booklet of the Comptroller’s Handbook for more information about the Comptroller’s Handbook.

Further Information

Please contact the Credit Risk division at 202-649-8281.

James M. Gallagher
Senior Deputy Comptroller and Chief National Bank Examiner