On June 23, the Fed announced it will no longer include reputational risk as a component of its examination programs in its supervision of banks. This move will align the Fed with the OCC, which made a similar announcement in March. According to the announcement, the Fed has begun reviewing and removing references to company reputation and reputational risk from its supervisory materials, including examination manuals, and will be training examiners to ensure the changes are implemented consistently across supervised banks. The Fed stated this change would not alter its expectation that banks maintain strong risk management to ensure safety and soundness and to comply with the law.
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