The Federal Reserve announced that it has eliminated reputational risk from bank supervision, allowing each bank to decide how much public image matters to them in their own risk management

Event date

June 23, 2025

Quotes that support claims

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.

But it’s now up to the banks to decide how much public image matters in their day-to-day work. The Fed said this change “is not 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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Week 26 of 2025