Overview

• The Fed announced that reputational risk is no longer a component of its bank examination programs, effective immediately.
• Supervisory materials, including examination manuals, are being reviewed to eliminate references to reputational risk and introduce more detailed financial risk discussions.
• The policy change does not affect banks’ obligation to uphold robust risk management for safety, soundness and regulatory compliance.
• The Board will provide examiner training to ensure the new approach is implemented consistently across its supervised institutions.
• The Federal Reserve will work with the FDIC and OCC to harmonize supervisory practices among federal banking regulators.