Office of the Comptroller of the Currency: banking system "remains sound" but flags rising CRE, cyber and AI risks

The Office of the Comptroller of the Currency said in its 2023 Semiannual Risk Perspective that "the overall strength of the federal banking system remains sound." The report, summarized by a presenter to listeners, paired that assessment with a warning that banks should "guard against complacency" as risks and the macroeconomic environment evolve.

The report identifies several specific areas of concern. It highlights increasing credit risk in commercial real estate lending, noting that stresses in that sector are a material risk to some institutions. The report also calls out elevated operational and compliance risks stemming from cyber threats and the growing role of third‑party partnerships that banks rely on for services. Finally, the perspective addresses approaches to artificial intelligence, saying emerging uses require attention from institutions and examiners.

The OCC frames the document as a resource for industry participants, bank examiners and the public, offering analysis intended to help financial institutions and regulators identify and mitigate evolving risks. The presenter directed listeners to occ.gov for the full report and additional materials.

The perspective does not itself impose new rules; it is an analytical document intended to inform supervision and industry practices. For the full text and supporting materials, the OCC directs readers to occ.gov.