Comptroller of the Currency Thomas Curry highlighted the importance of banks proactively working to strengthen their “risk cultures,” including those that have shifted practices in advance of pending regulations.
In a speech at the Clearing House in New York, Curry discussed the OCC’s recently finalized Part 30 “heightened expectations” risk governance guidelines for the largest bank, as well as the Dodd-Frank Act’s incentive-based compensation rules — adding that he hoped the agencies “are nearing the end of the process” on those rules more than three years after they were first proposed.
”Some banks have taken the initiative to implement compensation systems that achieve a better balance of risk and reward,” he said, adding that many banks have also complied with regulatory capital requirements well before the agencies issued final rules. “Banks should never wait for regulators when it comes to protecting their own safety and soundness or reputations.”
Read the speech.