OCC Spring 2026 Risk Report Finds Elevated Operational and Commercial Credit Risks Despite Sound Banking System

The Office of the Comptroller of the Currency released its Spring 2026 Semiannual Risk Perspective. The OCC stated that the federal banking system remains sound and resilient. Forbes reported that the agency identified elevated and interconnected risks tied to commercial credit deterioration, technology disruption, cyber threats, fraud, and persistent uncertainty around interest rates and liquidity.

The OCC continues to identify operational risk as elevated. It cited cyber threats, fraud, third-party risk, and challenges associated with implementing new technologies and products as reasons for that assessment.

Commercial credit risk is increasing according to the OCC, particularly in sectors exposed to refinancing pressure and weakened property fundamentals. Net absorption of office space turned positive in the second half of 2025. Refinancing risk remains elevated for loans backed by properties with declining cash flows or uncertain valuations.

Consumer credit performance is generally stable according to the OCC. Consumers continue to face pressure from inflation, higher interest rates, and rising debt burdens according to the OCC. Retail loan performance at OCC-supervised banks has generally improved in the past year.

Unrealized losses on securities portfolios fell and are at their lowest levels since 2021. Banks continue to face an elevated threat environment from cyber actors according to the OCC. Fraud activity remains high across multiple payment channels including checks, wire transfers, and peer-to-peer systems according to the OCC.