02 Jun OCC – Notice – Interagency Guidance on Credit Risk Review Systems
June 1, 2020 – The OCC, the FRB, the FDIC, and the NCUA are issuing final guidance for credit risk review (final guidance). This guidance is relevant to all institutions supervised by the agencies and replaces Attachment 1 of the 2006 Interagency Policy Statement on the Allowance for Loan and Lease Losses.
The final guidance discusses sound management of credit risk, a system of independent, ongoing credit review, and appropriate communication regarding the performance of the institution’s loan portfolio to its management and board of directors.
The final guidance is available on June 1, 2020.
The collective U.S. banking agencies published an updated “Interagency Guidelines
Establishing Standards for Safety and Soundness (Guidelines)” which sets a comprehensive, consistent framework for credit risk reviews by a banking institution. The updates include terminology consistent with ASC Topic 326 (CECL).
For more information, visit www.federalregister.gov