Eensight

OCC: Semi-Annual Risk Perspective for Fall 2021

The Office of the Comptroller of the Currency pointed out in its most recent Semi-Annual Risk Perspective that - credit risk remains heightened due largely to the effects of the pandemic.

The OCC had issued its instructive Fiscal Year 2022 Bank Supervision Operating Plan. The document instructs examiners to watch for complacency, and to “evaluate banks’ actions to manage credit risk given changes in market condition, termination of pandemic related forbearance, uncertainties in the economy, and the lasting impacts of the COVID-19 pandemic.

Businesses continued to borrow in 2020, although much of last year's lending activity has more to do with keeping Pay Cheque Protection (PPP) loans afloat than with the expansion of operations.

Today, with an economy that is more stable, if not more robust, many companies are looking to invest and grow(that is, if they can get enough people to come to work), at a time when banks are sitting on more cash than normal and are willing to lend. Read here:

https://businesswest.com/blog/banks-see-healthy-surge-of-commercial-lending/

Banks See Healthy Surge of Commercial Lending - BusinessWest Open for Business Businesses didn’t stop borrowing in 2020, although much of last year’s lending activity had more to do with staying afloat with Paycheck Protection Program (PPP) loans than expanding operations. These days, with the economy in a more stable — if not exactly robust — place, ...