Federal Reserve Board drops reputational risk from exams, aligning with OCC and FDIC shift
By 
Aaron Nicodemus2025-06-26T15:37:00
Bank examiners at the Federal Reserve Board will no longer assess reputational risk during examinations, a concession to the banking industry already underway with two other U.S. regulators.
The Fed announced the change Monday, saying that references to reputational risk will be removed from all supervisory materials, including examination manuals. References to reputational risk will be replaced, the Fed said, with “more specific discussions of financial risk.”
In dropping reputational risk from examinations, the Fed joined the Treasury’s Office of the Comptroller of the Currency (OCC), which made a similar announcement in March, while leaders within the Federal Deposit Insurance Corporation (FDIC) have indicated the agency will follow the trend.
Related articles
-
News BriefBank of America Securities avoids prosecution over market manipulation case
The DOJ announced Thursday that it has declined to prosecute Bank of America Securities over lapses related to a spoofing scheme conducted by two former employees that went on for almost seven years.
-
OpinionDecision Debt: The silent crisis undermining compliance and governance
Decision debt is the practice of leaving key compliance decisions unresolved, and it is a crisis few compliance leaders are willing to name. Some of the world’s largest financial institutions, including Wells Fargo and Citibank, have learned this lesson the hard way.
-
ArticleMore than 100 ‘anticompetitive’ federal regulations poised for the chopping block
About 125 federal regulations deemed anticompetitive by President Trump are poised for possible elimination, following recommendations delivered Wednesday to the Office of Management and Budget (OMB).
More from Risk Management
-
PodcastStudy: Compliance managers must set rules in race to adopt AI agents and copilots
More than half of all compliance teams are “actively using” or “piloting” AI applications, according to a Moody’s report. While most are focusing on streamlining routine tasks, some are developing AI agents and asking vital questions about AI decision-making.
-
PremiumThanks to 'laser focus' on cartels, Trump admin creates new corporate risks in Mexico
The Trump administration’s designation of Mexican cartels as terrorist organizations in February has made doing business in Mexico riskier than ever before for corporations.
-
News BriefCOSO’s draft corporate governance framework provides roadmap to compliant business practices
Corporate governance is, all too often, handed down from generation to generation. Like a well-worn jacket, it works great—until it doesn’t. Typically, it is a crisis that forces companies to reassess their corporate governance framework, as gaps are filled and poor policies rewritten. But it doesn’t have to be that ...