The Federal Reserve (FED) cancels regulatory inspections on banks' reputational risks.

On June 24, the Federal Reserve (FED) announced that it would no longer consider "reputation risk" as part of the bank regulatory inspection items.

The Fed has begun reviewing and removing references to "reputational" and "reputational risk" from regulatory materials, including inspection manuals, and, where appropriate, replacing these with more specific financial risk discussions. The Board will train examiners to ensure that this change is consistently implemented across all banks supervised by the Board and will work with other federal banking regulators as needed to promote consistency in regulatory practices.

This change does not alter the Council's expectations for banks to maintain strong risk management to ensure safety and soundness and compliance with laws and regulations, nor does it affect the Council's oversight of whether and how banks use the concept of "reputational risk" in their own risk management practices.