Federal Reserve Board states that safety and soundness expectations for banks remain unchanged despite the elimination of reputational risk as a supervisory component of bank examination programs

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.

The Fed also said it will retrain supervisors so that the new rule is applied the same way for every bank. It added that the move does not mean banks can be careless. They still need strong systems to manage risk and follow the rules.

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Week 26 of 2025