Federal Banking Agencies Remove “Reputation Risk” from Supervisory Guidance

On June 2, 2026, the Federal Reserve Board, the FDIC, and the OCC jointly announced the latest step in the administration’s ongoing initiative to remove references to “reputation risk” as a standard for bank supervision. 

The joint announcements provide that references to “reputation risk” have been eliminated in certain interagency documents.  This action builds upon previous agency initiatives to remove “reputation risk” from supervisory standards, addressing concerns that the concept’s inherent subjectivity has led to regulatory misuse (see prior WBK coverage here and here).