View Rule

The FDIC anticipates requesting comment on a proposal that would eliminate reputation risk from its supervisory program. Among other things, the proposal would prohibit the FDIC from criticizing or taking adverse action against an institution on the basis of reputation risk.

Statement of Need:

In October 2025, the FDIC and the Office of the Comptroller of the Currency (OCC) issued a proposed rule to codify the removal of reputation risk from their supervisory programs. The proposed rule would impose no requirements on banks. It would prohibit the agencies from criticizing, formally or informally, or taking adverse action against an institution or any employee of an institution on the basis of reputation risk. The proposed rule would also prohibit the agencies from requiring, instructing, or encouraging an institution to close customer accounts or take other actions on the basis of a person or entity’s political, social, cultural, or religious views or beliefs, constitutionally protected speech, or solely on the basis of politically disfavored but lawful business activities perceived to present reputation risk.  This rule would thus codify sound examination practices and advance the goals of the President’s Executive Order on Debanking. If adopted, the proposed rule would indirectly benefit FDIC-supervised insured depository institutions (IDIs) or associated persons to the extent they would have been the subject of an adverse action or prohibition against certain business relationships by the agencies on the basis of reputation risk; political, social, cultural, or religious views and beliefs; constitutionally protected speech; or politically disfavored but lawful business activities perceived to present reputation risk. This benefit would occur as the IDI or associated person would avoid any costs associated with such adverse actions or prohibitions.  Additionally, the improved efficiency and effectiveness of the FDIC’s supervisory programs may also indirectly benefit covered IDIs.  Further, IDIs may incur some voluntary costs associated with making changes to their compliance policies and procedures.

Summary of the Legal Basis:

Please see above

Alternatives:

Please see above

Anticipated Costs and Benefits:

Please see above

Risks:

Please see above