Gate News bot news, the Federal Reserve (FED) announced that it will no longer consider "reputational risk" as part of its bank regulatory examination program.
The Federal Reserve (FED) has begun reviewing and removing references to "reputation" and "reputational risk" in regulatory materials, including examination manuals, and replacing them with more specific discussions of financial risk where appropriate. The Board will train examiners to ensure that this change is consistently implemented across all banks supervised by the Board, and will work with other federal banking regulatory agencies as needed to promote consistency in regulatory practices.
This change does not alter the Council's expectations for banks to maintain strong risk management to ensure safety and soundness and compliance with laws and regulations, nor does it affect the Council's oversight of how banks use the concept of "reputational risk" in their own risk management practices.
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The Federal Reserve removes the "reputational risk" factor from bank supervision inspections.
Gate News bot news, the Federal Reserve (FED) announced that it will no longer consider "reputational risk" as part of its bank regulatory examination program.
The Federal Reserve (FED) has begun reviewing and removing references to "reputation" and "reputational risk" in regulatory materials, including examination manuals, and replacing them with more specific discussions of financial risk where appropriate. The Board will train examiners to ensure that this change is consistently implemented across all banks supervised by the Board, and will work with other federal banking regulatory agencies as needed to promote consistency in regulatory practices.
This change does not alter the Council's expectations for banks to maintain strong risk management to ensure safety and soundness and compliance with laws and regulations, nor does it affect the Council's oversight of how banks use the concept of "reputational risk" in their own risk management practices.