The Federal Reserve announced on 23 June 2025 that it will no longer treat reputational risk as a component of examination programmes in its supervision of banks, and that it had begun removing references to reputational risk from its supervisory materials, including examination manuals, replacing them where appropriate with more specific discussions of financial risk. The decision was set out in a press release published on the Fed's website.
Reputational risk — broadly understood as the risk that adverse public perception of a bank could affect its ability to attract customers, counterparties, or funding — has been a component of bank supervisory frameworks in the United States for a number of years.
IMPLEMENTATION
The Fed said it will train examiners to help ensure the change is implemented consistently across Board-supervised banks and will work with the other federal bank regulatory agencies to promote consistent practices.