Federal Reserve Removes 'Reputation Risk' from Bank Supervision

According to BlockBeats, the Federal Reserve announced it will no longer include 'reputation risk' as part of its bank supervision examination program. The Fed has begun reviewing and removing references to 'reputation' and 'reputation risk' from its regulatory materials, including examination manuals. These will be replaced with more specific discussions of financial risks where appropriate. The Board will train examiners to ensure consistent implementation of this change across all banks under its supervision. Additionally, the Fed plans to collaborate with other federal banking regulators to promote uniformity in regulatory practices. This change does not alter the Board's expectations for banks to maintain strong risk management to ensure safety, soundness, and compliance with laws and regulations. It also does not affect how banks may choose to incorporate 'reputation risk' into their own risk management practices.