The Federal Reserve removes the "reputation risk" factor from bank regulatory examinations.

On 24 June, the U.S. Federal Reserve (Fed) announced that it would no longer include “reputational risk” as part of its regulatory checks on banks. The Fed has begun reviewing and removing references to “reputational” and “reputational risk” from regulatory materials, including inspection manuals, and, where appropriate, replacing these with more specific financial risk discussions. 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 regulators as needed to promote consistency in regulatory practices. This change does not alter the Board’s expectation that banks maintain strong risk management to ensure safety and compliance with laws and regulations, nor does it affect whether and how banks use the concept of “reputational risk” in their own risk management practices.