Secret bank ratings show US regulator’s concern on handling risk

Pedestrians walk along Wall Street near the New York Stock Exchange (NYSE) in New York, US, on Thursday, May 16, 2024. Photographer: Alex Kent/Bloomberg

NEW YORK: A key US regulator has privately found half of the major banks it oversees have an inadequate grasp of a broad swath of potential risks from cyber attacks to employee blunders, according to people familiar with the matter.

In the confidential assessments, the Office of the Comptroller of the Currency (OCC) said 11 of the 22 large banks it supervises have “insufficient” or “weak” management of so-called operational risk, said the people, who asked not to be identified because the information isn’t public.