The Federal Reserve requested comments on its proposal to codify the removal of reputation risk from its supervision of banks.
Background: The Fed last summer announced it had started the process of reviewing and removing references to reputation and reputational risk from its supervisory materials, including examination manuals, and replacing those references with more specific discussions of financial risk.
Comment Deadline: Comments are due within 60 days after publication in the Federal Register.
ICBA Advocacy: ICBA in December expressed support for a proposed rule from the FDIC and OCC to prohibit the use of reputation risk by regulatory agencies and urged the agencies to finalize it promptly.