OCC: Banks ready for economy issues

Banks’ financial conditions are strong and they continue to be ready to “deal with the economic headwinds arising from geopolitical events, higher interest rates and increased inflation,” according to the OCC’s Semiannual Risk Perspective report (.pdf) for spring 2022 issued late last month.

The report addresses key topics facing banks, focusing on those that pose threats to safety and soundness and compliance with laws and regulations.

Key takeaways from the report included:

• “While banks continue to navigate the operational and market-related effects of the pandemic and substantial government stimulus, current geopolitical events have led to tightening financial conditions and increasing downside risk to economic growth.

You can read the entire report on the OCC website by clicking here (.pdf).