Washington, D.C. — The Office of the Comptroller of the Currency (OCC) has announced a series of guidance updates and proposed rulemakings aimed at reducing regulatory burden and enhancing operational flexibility for community banks across the United States.
The initiative reflects the OCC’s ongoing commitment to tailored supervision, ensuring that smaller institutions can maintain safety and soundness while focusing on their core mission of supporting local communities and economic growth.
“Community banks have an outsized impact on lending and are vital to the strength of the U.S. economy,” said Comptroller of the Currency Jonathan V. Gould. “Today’s actions relieve these banks of regulatory burden and unproductive reporting requirements, allowing them to better serve their communities and drive economic growth.”
Key updates include the removal of fixed examination requirements, replaced by risk-based supervision tailored to each bank’s profile. The OCC will also rely solely on core assessment standards from its Community Bank Supervision handbook for evaluating retail nondeposit investment products.
In a separate bulletin, the OCC emphasized that model risk management practices should be proportionate to each bank’s size, complexity, and risk exposure, clarifying that prescriptive requirements—such as annual model validations—are not mandatory.
The OCC also proposed two regulatory changes:
- Rescinding the Fair Housing Home Loan Data System regulation, eliminating redundant data collection requirements.
- Expanding eligibility for expedited or reduced licensing procedures for community banks, simplifying compliance and encouraging corporate activity.
The OCC confirmed it will continue to prioritize community bank-focused reforms, including updates to the community bank leverage ratio framework and simplified CRA strategic plan processes.
