WASHINGTON — The Office of the Comptroller of the Currency’s newly installed interim leader will focus on "solving urgent problems and addressing pressing issues" until the Biden administration selects and the Senate confirms a permanent head of the agency, acting Comptroller Michael Hsu said Monday.
On his first day at the helm of the agency, Hsu signaled that under his watch the OCC will address how banks are confronting climate change and the pace of technologial development, among other issues, and conduct a full review of regulatory standards.
“The review will take into account a full range of views, both external and internal,” Hsu wrote in a message to employees. “I want to make sure that we distinguish the forest from the trees, that changed circumstances due to the pandemic are considered, and that all alternatives are evaluated.”
It remains unclear just how long Hsu will hold the title of acting comptroller. The White House has
Hsu suggested a focus on making sure banks cater to those most affected by COVID-19, and said he believes the industry should be engaged with climate change risks.
“The pandemic has had a disproportionate impact on vulnerable communities, especially communities of color and rural communities, and the recovery threatens to leave many of them even further behind,” Hsu wrote. “Climate change poses new risks and challenges for banks, and we need to make sure they understand those risks and are capable of managing them.”
Hsu indicated he plans to examine trends in “technological change and digitalization” and combat “complacency about risk-taking.”
“The 1,200 national banks and federal savings associations that the OCC supervises are facing more change now than at any point in recent memory,” Hsu wrote. “The OCC has a well-earned reputation for having strong examiners, an excellent policy shop, and sharp lawyers, supported by a team of dedicated professionals who enable effective operations.”
“We are going to need to build off of that to adapt to today’s challenges and a rapidly changing environment,” Hsu added.
