Lease Financing: Revised Comptroller’s Handbook Booklet and Rescissions

The Office of the Comptroller of the Currency (OCC) has published a revised Lease Financing booklet addressed at institutions engaged in lease financing. This booklet – which first presents the general concept of lease financing, outlines corresponding regulations, and notes lease financing-related restrictions – focuses on identifying and analyzing risks of (covered) institutions associated with lease financing. Such risks range from credit and liquidity risks, to operational, compliance, or reputational risks. The booklet subsequently provides methods to assess the quality of institution’s risk management practices in relation to these risks by supervisory staff. The revised version mainly
– contains updates to account for recent changes in lease accounting standards;
– includes clarifications with respect to „supervisory guidance, sound risk management practices, and legal language“; and
– incorporates general content changes for clarification purposes.
For more information, please see attached file or follow above noted link. With the publication of this new booklet, any old versions are being rescinded (version 1.2 and version 1.4).