Fed to no longer police 'reputational risk' in banks

ReutersJun 23, 2025 6:00 PM

WASHINGTON, June 23 (Reuters) - The Federal Reserve announced on Monday it was directing its supervisors to no longer consider so-called "reputational risk" when examining banks, scrapping a metric that had been a focus of industry complaints.

The Fed said in a statement it was removing references to that risk in its supervisory manuals and other documents, and directing examiners to focus on specific financial risks. The Fed had defined reputational risk as the potential for negative publicity to hurt a bank's business or lead to costly litigation.

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