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FDIC to Discuss Ban on 'Reputation Risk' in Supervisory Decisions

The FDIC is considering a significant change in how it supervises banks. The proposed rule could impact how the agency assesses risk and regulates the industry.

The image is of a notice board. There are few notes on the board.
The image is of a notice board. There are few notes on the board.

FDIC to Discuss Ban on 'Reputation Risk' in Supervisory Decisions

The Federal Deposit Insurance Corporation (FDIC) will hold a special meeting on October 7, 2025, to discuss a proposed rule banning the use of 'reputation risk' in supervisory decisions. The meeting, authorized under 5 U.S.C. 552b, will take place at the FDIC's headquarters in Washington, D.C., and will be open to the public via webcast.

The agenda includes discussing a potential new rule to prohibit the use of 'reputation risk' in supervisory decisions, indicating a shift in regulatory approach. The meeting will also address unsafe or unsound practices in the industry that require regulatory attention.

Debra A. Decker, the Executive Secretary of the FDIC, is the point of contact for more information. The FDIC Board of Directors will convene at 10 a.m. ET. Media representatives planning to attend in person must notify the FDIC's Office of Communications by October 6. Auxiliary aids for observers with disabilities can be arranged in advance by contacting the FDIC's disability services team.

The FDIC's meeting on October 7, 2025, signals a significant step in regulatory reform, with a proposed ban on the use of 'reputation risk' in supervisory decisions. The meeting is open to the public, with provisions for accessibility and media attendance.

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