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OCC BULLETIN 2015-39
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Description: Revised Comptroller's Handbook Booklet and Rescissions

Summary

The Office of the Comptroller of the Currency (OCC) issued today the “Floor Plan Lending” booklet of the Comptroller’s Handbook. This revised booklet updates and replaces the “Floor Plan Loans” booklet issued in March 1990 (and examination procedures issued in May 1998). The booklet also replaces section 216, “Floor Plan and Indirect Lending,” issued in January 1994 as part of the former Office of Thrift Supervision Examination Handbook for the examination of federal savings associations.

The revised booklet provides examiners with an overview of the floor plan lending business, associated risks, and sound risk management practices. The booklet also provides examiners with expanded examination procedures and tools to use during supervisory activities that focus on this type of lending.

Note for Community Banks

This booklet applies to examinations of all national banks and federal savings associations engaged in floor plan lending.

Highlights

The “Floor Plan Lending” booklet

  • outlines for examiners the basics of floor plan lending, including the regulatory and legal foundation for this type of lending, common loan structures and borrower characteristics, and a description of indirect dealer lending.
  • describes the risks associated with floor plan lending, sound risk management practices, and regulatory risk rating guidelines.
  • provides an expanded examination procedures section and appendixes that include a glossary, examples of risk rating cases, and indicators for quantity of credit risk and quality of credit risk management.

For further information, contact Grant Wilson, Director for Commercial Credit Risk, at (202) 649-6670.

 

Jennifer C. Kelly
Senior Deputy Comptroller and Chief National Bank Examiner

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