The U.S. Office of the Comptroller of the Currency will be focusing on excessive risk taking, the concentration of commercial real estate loans, and the types of assets that banks bring onto their books when it examines banks and thrifts in the next few months, agency chief Thomas Curry said.
To prepare for exams, Curry said institutions needed to do a better job of identifying and monitoring inappropriate risks when making new loans. They would also need to develop a better understanding of the regulatory process and have a business plan that shows that they have enough capital.
Institutions were struggling to rebound from the weak economy and this caused many to take on inappropriate risks, Curry told a banking conference in Arizona on Tuesday.
"We may have weathered the worst of the financial crisis, but there are plenty of challenges ahead that stem from the weak economy," Curry said.
He said examiners would be looking for institutions that took wild risks "in the search
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