The Office of the Comptroller of the Currency (OCC) released its semiannual report, which flagged how banks’ efforts to keep up with rapid technological changes and the upcoming LIBOR transition might lead to looming risks for the industry. The OCC report mentioned elevated operational risks “as banks adapt to a changing and increasingly complex operating environment,” and said that they will be “increasing regulatory oversight” of national banks’ transition away from LIBOR. Although OCC officials say that the federal banking system is healthy and that institutions are in a good position to handle overall risk, certain risks, such as cybersecurity, have room for improvement. The OCC also advised banks to prepare for potential cyclical downturns in credit risk. 

Read more via American Banker.