Regulatory Alerts2025-10-30 | 2025-19711Unsafe or Unsound Practices, Matters Requiring Attention
The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation propose a regulatory definition of "unsafe or unsound practice" under section 8 of the Federal Deposit Insurance Act that prioritizes material financial risks over nonfinancial or policy-related concerns. The proposed rule establishes uniform supervisory standards for issuing matters requiring attention and other communications, clarifies how adverse actions and rating downgrades are evaluated, and ensures institutions are not penalized for lawful political or social activities. Applying prospectively to supervisory and enforcement activities, the framework provides greater consistency for banks and institution-affiliated parties while preserving regulatory authority to enforce safety and soundness.