Federal Reserve Board announces that reputational risk will no longer be a component of examination programs in its supervision of banks

Description

The Federal Reserve announced the removal of reputational risk from its bank supervision programs and examination manuals, with plans to retrain examiners and coordinate with other agencies.

Publish date

June 23, 2025

Publisher

Federal Reserve

Web URL

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250623a.htm#:~:text=This%20change%20does%20not%20alter,their%20own%20risk%20management%20practices.

Referenced by

Fed eliminates reputational risk from supervisory framework

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The Board will train examiners to help ensure this change is implemented consistently across Board-supervised banks and will work with the other federal bank regulatory agencies to promote consistent practices, as necessary.

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This change does not alter the Board's expectation that banks maintain strong risk management to ensure safety and soundness and compliance with law and regulation nor is it intended to impact whether and how Board-supervised banks use the concept of reputational risk in their own risk management practices.

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