OCC Updates Guidance on Concentrations of Credit
The OCC revised and restated the guidance it provides in its Handbook entitled “
Concentrations of Credit“ (the “OCC Guidance”). Among other things, the OCC Guidance: (1) expands the framework for identifying potential credit concentrations; (2) expands the definition of “credit concentration” to encourage banks and examiners to consider “more than just the dollar amount of exposure”; and (3) emphasizes the importance of stress testing in identifying and quantifying credit concentration risks.