Introduction
The Office of the Comptroller of the Currency (OCC) is one of the most influential financial regulatory bodies in the United States. Established in the 19th century, the OCC ensures the safety, soundness, and fair operation of the national banking system. It supervises and regulates national banks and federal savings associations, authorizes the creation of new banking institutions, and enforces compliance with federal laws.
For banks, fintechs, and anyone involved in financial services, understanding the OCC’s authority and responsibilities is critical for maintaining regulatory compliance and building trust in the marketplace.
1. What is the OCC?
The Office of the Comptroller of the Currency (OCC) is a bureau of the U.S. Department of the Treasury. It was created by the National Currency Act of 1863, which later became the National Bank Act. Its mission is:
“To ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.”
The Comptroller of the Currency—the head of the OCC—is appointed by the President and confirmed by the Senate. The agency is independent, self-funded, and does not rely on taxpayer dollars.
2. Core Responsibilities of the OCC
2.1 Chartering National Banks
The OCC is the only federal agency that can charter national banks and federal savings associations. Institutions that receive this charter carry the title “National Association” (N.A.) in their names.
2.2 Supervision and Regulation
The OCC supervises around 1,000 national banks, federal savings associations, and federal branches of foreign banks, covering:
- Asset management
- Capital adequacy
- Loan quality
- Internal controls
- Risk management
- Compliance with laws (e.g., AML, consumer protection)
2.3 Enforcement Actions
The OCC has the authority to issue cease and desist orders, impose civil monetary penalties, and remove bank officers or directors if laws are violated.
2.4 Consumer Protection
While the Consumer Financial Protection Bureau (CFPB) focuses on consumer rules, the OCC also enforces certain consumer protection laws within national banks, such as:
- Truth in Lending Act (TILA)
- Fair Housing Act
- Equal Credit Opportunity Act (ECOA)
3. OCC vs. Other Regulators
| Regulator | Supervises | Charter |
|---|---|---|
| OCC | National banks and federal savings associations | National Bank Charter |
| Federal Reserve | Bank holding companies and state-chartered member banks | State |
| FDIC | State-chartered non-member banks and deposit insurance | State |
| CFPB | Consumer protection across all banks and financial firms | N/A |
| FinCEN | AML and financial crime reporting | N/A |
The OCC is unique because it is the primary regulator for nationally chartered banks, meaning it oversees all aspects of their operations.
4. Bank Chartering: OCC’s Role in Approving New Banks
If you want to start a national bank, your application must go through the OCC. The OCC reviews:
- Business plans
- Capitalization
- Governance structure
- Risk management framework
- Community Reinvestment Act (CRA) strategy
Applicants must show that they will operate safely and serve the public’s interest.
The OCC also offers conditional approvals and preliminary approvals for fintechs and neobanks trying to enter the banking space.
5. Fintech and the OCC: Special Purpose National Bank Charter
In recent years, the OCC has explored how fintech firms can participate in the banking system through a special purpose national bank (SPNB) charter.
5.1 What is SPNB?
An SPNB can perform specific functions (like lending or payments) without taking deposits, thus avoiding FDIC insurance requirements.
5.2 Benefits for Fintechs
- Federal preemption of state lending laws
- Access to national banking network
- Supervision by a single regulator (OCC)
5.3 Legal Challenges
Some states (like New York) challenged the OCC’s authority to issue fintech charters, citing concerns about bypassing local consumer protections. As of 2025, the fintech charter landscape remains legally complex and evolving.
6. CAMELS Rating System
The OCC uses the CAMELS system to evaluate the health of banks:
- C: Capital adequacy
- A: Asset quality
- M: Management quality
- E: Earnings performance
- L: Liquidity
- S: Sensitivity to market risk
Each bank receives confidential ratings that influence supervision intensity, enforcement actions, and even public trust.
7. Risk-Based Supervision
The OCC conducts on-site examinations and off-site monitoring using a risk-based approach. This means that larger or more complex banks are subject to more intensive scrutiny.
They assess:
- Credit risk
- Market risk
- Operational risk
- Cybersecurity risk
- Third-party vendor risk
The OCC also issues Supervisory Guidance on emerging risks like AI in credit underwriting or crypto asset custody.
8. Key OCC Compliance Areas
Banks supervised by the OCC must comply with a wide array of laws, including:
- Bank Secrecy Act (BSA) and AML
- Community Reinvestment Act (CRA) – mandates banks to serve low- and moderate-income communities
- Consumer Protection Rules – fair lending, credit disclosure
- Fair Housing and Anti-discrimination laws
The OCC also ensures that institutions engage in ethical sales practices, especially following high-profile scandals in retail banking.
9. OCC and Innovation
The OCC has made efforts to support innovation through initiatives like:
9.1 Office of Innovation
Launched in 2016, this office helps banks and fintechs explore:
- Blockchain applications
- Mobile banking technologies
- Cloud adoption
- Open banking APIs
9.2 Innovation Pilots
The OCC sometimes allows banks to test new products under controlled environments, provided they remain compliant with safety and consumer protection rules.
10. OCC’s Enforcement Powers
When institutions violate laws or exhibit unsafe behavior, the OCC can:
- Issue formal enforcement actions (e.g., cease and desist orders)
- Impose civil money penalties
- Require restitution to harmed customers
- Remove or ban individuals from banking
Example: In 2020, the OCC fined a major bank $85 million for systemic flaws in its risk management and internal controls.
11. How OCC Impacts You (as a Fintech or Founder)
If your company:
- Wants to become a bank
- Partners with a national bank
- Offers banking-as-a-service
- Handles consumer financial data
…then the OCC indirectly or directly affects your business.
11.1 Chartering Route
You may apply for an OCC charter if you’re building a national banking product.
11.2 Third-Party Oversight
Even if you partner with an OCC-regulated bank, you may be subject to oversight, especially for AML, data security, and third-party risk.
12. OCC and Public Trust
The OCC plays a vital role in ensuring that banks:
- Do not take excessive risks
- Treat consumers fairly
- Serve the real economy
- Maintain adequate reserves
By supervising trillions of dollars in assets and thousands of branches nationwide, the OCC builds confidence in the U.S. financial system.
Conclusion
The Office of the Comptroller of the Currency (OCC) is one of the most important guardians of the U.S. banking system. Whether you’re launching a bank, building a fintech platform, or managing compliance for an established institution, understanding the OCC’s framework is crucial.
From chartering and supervision to enforcement and innovation, the OCC ensures that financial institutions operate with integrity, solvency, and responsibility. Staying aligned with OCC standards not only ensures compliance—it also builds long-term trust with regulators, customers, and partners.