(Reuters) – The acting head of the U.S. Office of the Comptroller of the Currency (OCC) is weighing how to increase transparency about an updated framework it uses to address oversight problems and shortcomings at large banks, the acting head said on Tuesday.
Banking regulators should also develop “credible mechanisms” to force divestitures of assets when necessary to reduce the size and complexity of large banks, Acting Comptroller of the Currency Michael Hsu said in a speech in Brussels. Kings Society.
The OCC’s escalation framework includes four levels to force banks to address issues, starting with non-public supervisory findings, stepping up enforcement actions, and eventually growing Hsu said if Regulators will impose restrictions if they find that deficiencies remain unresolved.
If growth limits are ineffective, regulators will consider “breaking up the banks”, or forcing companies to sell business lines or assets, he said.
