On March 20, 2025, the OCC issued a Bulletin announcing that it has commenced removing references to banks' reputation risk from its Comptroller’s Handbook booklets and guidance issuances. Concurrently, the OCC has instructed its examiners that they should no longer examine for reputation risk.
The OCC has clarified its action stating that it has not utilized reputation risk as a catch-all justification for supervisory action. Instead, the agency has concentrated on the impact of negative public sentiment on a bank’s financial stability and resilience. To enhance transparency in the supervisory process, the OCC plans to collaborate with other regulators to eliminate mentions of reputation risk from joint handbooks and guidance documents.
The discontinuation of examining for reputation risk applies to community banks.
Read the OCC’s Bulletin here.