The new head of the Office of the Comptroller of the Currency warned that some banks are taking undue risks and signaled a more conservative approach than his predecessors toward fintech firms seeking national bank charters.
In wide-ranging remarks prepared for congressional testimony, acting Comptroller Michael Hsu suggested that some institutions have become too lax in their risk management as the economy charts a path out of the pandemic. He pointed his finger specifically at larger banks. “I believe the banking system, especially large banks, is at risk of becoming complacent,” he said in testimony that he plans to present to the House Financial Services Committee on Wednesday. The OCC released his remarks Tuesday afternoon.