OCC Retail Lending Booklet

The OCC has issued Bulletin 2017-15 to introduce a new “Retail Lending” booklet for the Comptroller’s Handbook.

This new booklet, part of the “Safety and Soundness” category of the Handbook, discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. This booklet supplements the core assessment sections of the “Large Bank Supervision,” “Community Bank Supervision,” and “Federal Branches and Agency Supervision” booklets of the Handbook.

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.

While the booklet is not directed at credit unions, it does provide good reasoning and resources for retail lending groups.

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