OCC issues version 3.0 of Concentrations of Credit examiner handbook

The OCC has replaced version 2.0 of its Concentrations of Credit booklet with a reorganised version 3.0, used by examiners across all OCC-supervised banks. The threshold definition is unchanged, but the handling of securitizations, correlations and aggregate risk assessment is expanded. This short segment covers what moved, what the definition still is, and what examiners will be working from.

• Version 3.0 replaces version 2.0 and rescinds OCC Bulletin 2020-90, which had transmitted the earlier version.
• The concentration definition is unchanged: obligations exceeding 25 percent of tier 1 capital plus allowance for credit losses.
• New content covers securitizations, the correlation-concentration relationship, and determining aggregate risk.