On December 16, 2025, the OCC released their Fall 2025 edition of the publication Semiannual Risk Perspective. The publication addresses key issues facing banks, focusing on those that pose threats to the safety and soundness of banks and their compliance with applicable laws and regulations.
The Spring 2025 Semiannual Risk Perspective report presents data in three main areas: trends in key risks, the special topic, and economic environment and bank performance. Highlights from this edition include:
The strength of the federal banking system remains sound. Balance sheets are satisfactory, with strong capital and liquidity ratios ready for potential stress. Lower funding costs, moderate loan growth, and modest expense growth contributed to earnings performance. Unrealized losses in the investment portfolio decreased significantly due to the rate environment and strategic repositioning. The net interest margin (NIM) generally expanded, with deposit costs aligning with lower rates. Delinquencies and loss rates in the loan portfolio remain manageable, and liquidity is sound. Deposit levels, excluding brokered deposits, rose in the first half of 2025, and contingent liquidity sources are satisfactory and growing.
Cyber threats remain a concern. The OCC has observed an increase in threats posed by foreign state-sponsored actors and sophisticated cybercriminal groups, targeting the financial sector.
Financial innovation presents banking opportunities. The financial industry is undergoing a transformation in how products and services are delivered. Institutions that fail to invest in new technologies may face significant risks to their long-term performance. The OCC is working to create a regulatory environment that allows banks to innovate while managing financial risks safely.
The Spring 2025 OCC Semiannual Risk Perspective can be found here.