Banking and Finance Law Daily Wrap Up, BANKING OPERATIONS—Banking groups urge OCC to clarify guardrails in bank chartering proposal, (Feb 12, 2026)

By Shashi Kant, BALLB, LLM.

Trade associations call for clearer statutory alignment, supervisory transparency, and safeguards as OCC advances national bank chartering revisions.

The American Bankers Association and the Conference of State Bank Supervisors submitted comments addressing the Office of the Comptroller of the Currency’s proposed rulemaking to clarify national bank chartering standards and the treatment of national trust banks.

ABA position. In a press release and comment letter, ABA urged the OCC to ensure that “robust, broadly applicable safety and soundness standards are well understood and upheld” during what it described as a period of innovation in charter applications. ABA stated that the proposed amendment to 12 CFR 5.20 is not merely a clarification and should be recognized as material, warranting continued discussion and deliberation. ABA referenced 12 CFR 5.20(f)(1) and (2), noting that the OCC is guided by principles of maintaining a safe and sound banking system and ensuring compliance with applicable laws and regulations, and that the OCC evaluates whether an applicant has sufficient capital and will be operated in a safe and sound manner. ABA stated that regulatory responsibilities of some recent and potential charter applicants are not readily identifiable because regulatory frameworks applicable to stablecoin and other digital asset activities remain under development.

ABA further stated that if a national bank does not have federal deposit insurance and becomes insolvent, the OCC would be responsible for appointing a receiver and overseeing resolution, and it encouraged the OCC to ensure its receivership capacities are adequate for new business models. ABA urged the OCC to allow each applicant’s regulatory responsibilities to come fully into view before moving charter applications forward. ABA also addressed naming conventions, suggesting that the OCC revise its regulations to ensure that new charter applicants’ names do not misrepresent the financial services they intend to offer. In addition, ABA called for greater transparency in the charter application and decisioning process, stating that publicly available materials for some recent applications have not provided sufficient information for meaningful public assessment.

CSBS position. In a separate comment letter, CSBS stated that national trust bank charters must adhere to the requirements of the National Bank Act. CSBS expressed concern that the proposed rule could be interpreted to expand the OCC’s chartering authority beyond statutory limits and emphasized that Congress authorized national banks to engage in the “business of banking” as defined in statute. CSBS stated that the OCC’s proposal should not permit chartering entities that do not engage in core banking functions unless expressly authorized by statute. The organization urged the OCC to ensure that any clarification does not alter the scope of permissible activities beyond what Congress has provided and stated that statutory guardrails should remain central to charter determinations.

Regulatory background. The OCC issued a notice of proposed rulemaking intended to clarify that national trust banks are not prohibited from engaging in non-fiduciary activities and that the requirement to conduct at least one of three core banking functions, receiving deposits, paying checks, or lending money, continues to apply only to special purpose banks. The proposal states that it is intended to clarify existing authority rather than expand or contract it. According to the notice, national trust banks are authorized under the National Bank Act to limit their activities to the operations of a trust company and activities related thereto, and custody and safekeeping activities are generally considered part of the business of banking (Banking and Finance Law Daily , Jan. 9, 2026). The OCC requested comment on whether additional language would better clarify the issue. In their respective submissions, ABA and CSBS each urged the OCC to ensure that any revisions to its chartering regulations are grounded in statutory authority and accompanied by clear supervisory expectations for applicants.

Companies: American Bankers Association; Conference of State Bank Supervisors

RegulatoryActivity: BankingOperations CommunityDevelopment DepositInsurance FinancialIntermediaries FinancialStability FinTech