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The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation propose to define the term "unsafe or unsound practice" for purposes of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) and to revise the supervisory framework for the issuance of matters requiring attention and other supervisory communications.

Statement of Need:

In October 2025, the FDIC and the OCC issued a proposed rule to revise their regulations to define the term unsafe or unsound practice for purposes of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) and revise the supervisory framework for the issuance of matters requiring board attention (referred to as matters requiring attention (MRAs) in the proposed rule) and other supervisory communications.  The proposed rule aims to provide regulatory clarity and certainty for supervised institutions, and to enable supervised institutions and examiners to focus attention on more significant issues at the institutions.  This is expected to reduce compliance costs at banks, streamline supervisory communications, and enhance comparability among the agencies.  The proposed rule, if adopted, would pose two types of indirect benefits to supervised IDIs: 1) reductions in, or more efficient use of, costs to comply with findings from Reports of Examinations (ROEs), and 2) possible increases in proceeds from the provision of banking products and services.

Summary of the Legal Basis:

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Alternatives:

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Anticipated Costs and Benefits:

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Risks:

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