The Comptroller of the Currency Should Decide the Extent to Which His Action Control System is Needed.
Abstract
This letter is one result of our study of changes in bank supervision since 1976. The objective of that study is to see if banking supervision has improved in the last 5 years. Because quality supervision requires current and accurate information, we assessed the banking supervisory agencies' efforts to obtain and use better information on banks. Our analysis of the information that agencies are receiving led us to the Comptroller of the Currency's (OCC) ACS (Action Control System). First, our overall study of supervisory changes included a sample of cases of banks requiring special supervisory attention. We selected these cases to assess how the banking supervisory agencies are dealing with bank problems. At OCC we determined how ACS was used. We also discussed the system with OCC headquarters and regional officials. In addition, we studied documents prepared by OCC staff which described and evaluated the system. Despite its laudable goal of monitoring banks of special concern to OCC, ACS has not been used to the extent originally envisioned. ACS was designed to give OCC a fast communication link so it could take quicker and more uniform action against banks of concern than it could previously. The OCC committee studying ACS is not going far enough. It is trying to improve ACS' usefulness by redesigning its format. However, it is not addressing the question of extent to which ACS is needed to solve the perceived problem. Although a need for a standardized monitoring system may exist, ACS may not be the right system to fulfill that need.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 28, 1981
- Accession Number
- ADA107182
Entities
Organizations
- United States Government Accountability Office