OCC outlines supervisory, innovation agenda as Jonathan Gould marks first year

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OCC supervisory, innovation agenda

Highlights

OCC, under Jonathan Gould, is shifting supervision to focus on material financial risk with increased transparency, consistency, and objective risk-based decisions.
The OCC will leverage technology and AI to speed supervisory decisions, prioritize examiner resources by risk, and require faster remediation at large banks.
Gould expects the OCC's chartering pipeline to remain robust as the federal banking system re-embraces innovation within a strong supervisory framework following years of stagnation.

Regulatory priorities and technology plans

As reported by Office of the Comptroller of the Currency, Gould says the agency is refocusing supervision on material financial risk and moving toward a more transparent, consistent and risk-based approach. He says that means clarifying expectations, improving consistency across examination teams and grounding supervisory decisions in objective financial risks.

Gould argues that reducing unnecessary compliance demands can free banks to serve customers, extend credit and support economic growth. He also says the U.S. must remain the leading market for financial innovation, with regulation providing enough clarity for new technologies to develop within the federal banking system.

He says the OCC plans to use technology and AI to reach supervisory conclusions faster, allocate examiner resources based on risk and carry out more direct validation of larger banks' balance sheets and financial risks. In return, the agency expects more sustained attention from bank decision-makers and quicker remediation of issues, especially at the biggest banks.

Chartering pipeline and banking sector implications

Gould says the federal banking system should remain the benchmark for responsible financial innovation as financial markets evolve. His remarks indicate the OCC wants innovation to take place inside well-supervised institutions operating under clear rules, rather than outside the regulated banking framework.

He also says the agency has spent the past year strengthening its workforce by recruiting talent, developing internal leaders and positioning the organization for a more dynamic financial system. Looking ahead, Gould says the OCC's chartering function should continue to see a robust pipeline as the banking sector moves past what he describes as two decades of paralysis and returns to a more innovative model.

In our earlier coverage of M&T Bank’s second-quarter results, we noted that higher borrowing yields continued to support regional bank earnings as customers adapted to a prolonged high-rate environment. The bank reported stronger net interest income and a wider net interest margin, alongside rising loan balances and improved trust income, while provisions for credit losses eased slightly. Overall, the update highlighted how elevated rates were still helping U.S. banks generate interest income even as credit and funding dynamics remained in focus.

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