Agency official tells committee OCC will fix operational failures and return to risk‑based supervision

An agency official testifying before a congressional committee said the Office of the Comptroller of the Currency will prioritize fixing internal operational failures and restoring a risk‑based supervisory approach.

The official told the committee, "The OCC support functions have degraded in recent years, posing a risk to our ability to execute our statutory mission," and said addressing those problems is the agency's top priority. They cited the "hiring of a fraudulent chief financial technology officer in 2022" and an "email data breach that took nearly 2 years to identify and halt" as outward signs of the decline and said the agency is working to ensure accountability and recruit qualified personnel.

The testimony framed operational fixes as foundational to broader regulatory goals. The official said the OCC will codify reforms to the "matters requiring attention" process, clarify enforcement standards, and ensure supervisory tools are used "proportionately and predictably," with examiners focusing on issues that "materially affect banks' safety and soundness." The official characterized the shift as a return to examiner judgment rather than an "arbitrary checklist" approach.

The witness urged that operational improvements and staffing reforms are necessary before other policy priorities can be implemented effectively. No specific timeline or metrics for completion were provided during the testimony.

The hearing concluded with the official reiterating that fixing agency operations is the OCC's top priority and that the agency will take steps to improve accountability and competence across its support functions.