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

According to BlockBeats, on June 24th, the Federal Reserve of the United States (Fed) announced that it will no longer include "reputation risk" as part of its banking regulatory inspection program. The Federal Reserve has begun reviewing and removing relevant statements about "reputation" and "reputation risk" from regulatory materials, including inspection manuals, and replacing them with more specific financial risk discussions where appropriate. The board will provide training to the reviewers to ensure consistent implementation of this change across all banks regulated by the board, and will collaborate with other federal banking regulatory agencies as needed to promote consistency in regulatory practices. This change does not change the expectation of the board of directors for banks to maintain strong risk management to ensure safety, stability, and compliance with laws and regulations, nor does it affect the board's supervision of whether and how banks use the concept of "reputation risk" in their own risk management practices.