
The Office of the Comptroller of the Currency (OCC) has announced a significant shift in its examination practices by ceasing the use of 'reputation risk' as a criterion in bank evaluations. This decision aims to enhance transparency and public confidence in the OCC's supervisory process, as it clarifies that the agency does not make business decisions for banks. Industry experts have expressed support for this change, noting that it removes a subjective measure that could be misused by regulators. The OCC retains its authority to supervise risky behaviors in banking operations, ensuring that the focus remains on more transparent risk areas.
RELEASE: BPI Response to OCC’s Decision to Cease Examinations for Reputation Risk - https://t.co/EQXH1acNEG https://t.co/3DpC4YHsQe
🚨🚨🚨 No more “reputation risk” will be used in OCC bank exams. It was subjective & was captured by some politically-motivated managers at the federal bank regulators for use as their cudgel against industries & people they didn’t like. Good move, @USOCC.👏 https://t.co/AX3RfC3e1A
I’ve been saying that bank regulators should do this for years. The OCC will still have plenty of authority to supervise risky behavior. https://t.co/8ghJ3CWavz