On May 25, 2023, the OCC released a revised Policies and Procedures Manual (PPM) for bank enforcement actions and related matters. The revised version of the manual, particularly PPM 5310-3, replaces the version issued on November 13, 2018.
The revised portion of the manual now includes a new appendix, “Appendix C: Actions Against Banks With Persistent Weaknesses”, which generally applies to banks subject to Heightened Standards under 12 CFR 30, appendix D. In particular, the new appendix discusses the following:
Persistent weaknesses a bank may exhibit warranting further action(s) by the OCC against the bank; and
The types of actions, requirements, and restrictions that may be appropriate to address a bank’s persistent weaknesses.
Accordingly, the OCC will consider further action if a bank fails to correct its persistent weaknesses in response to prior enforcement actions or other measures. Such action could require the bank to simplify or reduce its operations including that the bank reduce its asset size, divest subsidiaries or business lines, or exit from one or more markets of operation. In addition, the revised PPM incorporates additional clarifications, such as updated legal and regulatory citations.
Read the OCC’s press release here.
The revised PPM can be found here.