OCC Issues Retail Lending Booklet
Safety and Soundness Category in Comptroller’s Handbook
April 12, 2017, the Office of the Comptroller of the Currency (OCC) issued Bulletin 2017-15 “New Comptroller’s Handbook Booklet” announcing its issuance of a new “Retail Lending” booklet.
The Retail Lending booklet of the Comptroller’s Handbook is part of the “Safety and Soundness” category of the Comptroller’s Handbook and discusses the risks associated with retail lending common across product types. The booklet provides a framework for evaluating retail credit risk management activities offered directly, through various platforms, and indirectly through different origination sources. Additional booklets cover risk management activities specific to particular retail products. For example, the “Residential Real Estate Lending” booklet contains information specific residential mortgage lending activity which applies in addition to the fundamental principles covered in this Retail Lending booklet.
These booklets supplement the core assessment sections of the “Large Bank Supervision,” “Community Bank Supervision,” and “Federal Branches and Agency Supervision” booklets of the Comptroller’s Handbook. The booklet applies to examinations of all institutions engaged in retail lending.
The “Retail Lending” booklet describes
- Characteristics of an effective retail credit risk management framework.
- Criteria examiners should consider when evaluating retail credit originations, account management, collections, and portfolio management activities and processes.
- Objectives of control functions commonly used in a retail lending business to measure performance, make decisions about risk, and assess the effectiveness of processes and personnel.
View the booklet here: