Magazine article American Banker

In Brief: OCC to Raise Fees for Camels 3, 4, 5

Magazine article American Banker

In Brief: OCC to Raise Fees for Camels 3, 4, 5

Article excerpt

Effective July 1, the Office of the Comptroller of the Currency will raise its fees for all institutions with composite Camels ratings of 3 or worse and will increase the exam fees paid by independent credit card banks, the agency said Friday.

The OCC currently computes its surcharge on poorly rated banks by increasing the asset-based element of its assessment, by 25% for banks with Camels ratings of 3, 4, or 5. The agency is expanding the surcharge formula to include all elements of the bank's assessment and increasing the percentage. Banks rated Camels 3 would be charged 50% more than a bank of similar size and structure with a 1 or 2 rating. Banks rated 4 or 5 would be charged 100% more than comparable institutions rated 1 or 2.

The Camels system grades institutions on six factors: capital, asset quality, management, earnings, liquidity, and sensitivity to risk. Performance is rated on a scale of 1 to 5, with 5 being the worst. …

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