The U.S. banking industry is stable nearly nine months into the coronavirus pandemic, but the Office of the Comptroller of the Currency (OCC) this week warned of increased risks for banks seeking to comply with the Bank Secrecy Act (BSA) and consumer protection and fair lending requirements.
The OCC’s “Semiannual Risk Perspective for Fall 2020,” released Monday, lays out new and emerging pandemic-related risks for banks caused by credit defaults and historically low interest rates; cyber-security threats posed by work-from-home environments; and compliance risks being elevated by remote work as well as “the requirement to quickly operationalize federal, state, and proprietary programs designed to support businesses and consumers,” the agency said in a press release accompanying the report. The report covers risks facing national banks and federal savings associations based on data as of June 30.
