FDIC, OCC Finalize Rule Eliminating Reputational Risk from Supervision

04/08/26

The Federal Deposit Insurance Corporationand the Office of the Comptroller of the Currencyhave finalized a joint rule eliminating the use of reputational risk as a factor in their supervisory processes.

This rule formalizes a shift that agency leadership had already directed examiners to implement. It also aligns with a broader push during the Trump administrationto remove policies believed to have led regulators to unfairly target certain sectors, including cryptocurrency.

Additionally, the rule bars the agencies from pressuring or directing financial institutions to close accounts or take other actions based on a customer's political, social, cultural, or religious beliefs.