Fed announces that supervisory inspections will no longer include "reputational risk" considerations

The Federal Reserve Board announced that it will no longer include "reputational risk" considerations in its bank supervisory review procedures and has begun removing related language from regulatory materials, replacing it with more specific financial risk content as appropriate. The Federal Reserve emphasized that this move does not affect its requirements for banks to maintain robust risk management and compliant operations, nor does it interfere with banks' potential continued use of the "reputational risk" concept in their own management.