U.S. Financial Regulators Remove 'Reputation Risk' from Banking Standards

According to PANews, recent developments indicate that the Office of the Comptroller of the Currency (OCC) in the United States has officially removed 'reputation risk' from its bank examination criteria. This change follows a commitment by Federal Reserve Chair Jerome Powell last month to eliminate guidelines that instructed staff to monitor bank executives for controversial statements. The OCC's decision marks a shift towards focusing on more transparent risk areas in the future. This move addresses one of the key factors that previously contributed to 'debanking,' where regulatory bodies required banks to consider 'reputation risk' when assessing clients' eligibility for financial services.