Federal Register #OCC-2025-0142

Final Rule Prohibiting Use of Reputation Risk by OCC and FDIC

This final rule from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) updates supervisory practices for federally regulated financial institutions. - Government Buyers: - Office of the Comptroller of the Currency (OCC), Department of the Treasury - Federal Deposit Insurance Corporation (FDIC) - Scope and Impact: - Prohibits OCC and FDIC from using reputation risk as a basis for criticism or adverse action against financial institutions - Agencies cannot require or encourage account closures or service modifications due to protected speech or lawful activities perceived as reputation risk - Prevents actions intended to punish or discourage lawful political, social, cultural, or religious activities, or constitutionally protected speech - Applies to all OCC- and FDIC-supervised institutions - Procurement Details: - No products, OEMs, or vendors are mentioned - No procurement of goods or services is requested - Notable Requirements: - The rule does not impose new reporting or recordkeeping requirements on institutions

Description

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have adopted a final rule eliminating the use of reputation risk in their supervisory programs. The rule prohibits these agencies from criticizing or taking adverse actions against financial institutions based on reputation risk. It also forbids requiring or encouraging institutions to close accounts or modify services due to protected speech or lawful activities perceived as reputation risk. Additionally, the rule prevents actions designed to punish or discourage lawful political, social, cultural, or religious activities or constitutionally protected speech.

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