On December 16, the OCC reported on several key issues facing the federal banking system in its Semiannual Risk Perspective for Fall 2025. The OCC found that the strength of the federal banking system remained sound, with satisfactory balance sheets and high capital and liquidity ratios well-positioned to absorb potential stress. The report highlighted that commercial and retail loan portfolio delinquencies, loss rates, and noncurrent and classified levels remained manageable, while liquidity continued to be sound. Financial innovation presented opportunities for banks, but the OCC warned that a lack of investment in new technologies could pose risks to long-term performance and institutional viability.

The OCC identified credit, market, operational, and compliance risks as key themes. The agency observed an increase in threats posed by foreign state-sponsored actors and sophisticated cybercriminal groups targeting the financial sector, as well as banks facing ongoing challenges from elevated levels and sophistication of fraud.