Regulatory Alerts2026-04-07 | FIL-13-2026Agencies Issue Final Rule to Prohibit Use of Reputation Risk by Regulators
The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency jointly issued a final rule prohibiting federal regulators from criticizing, taking adverse action against, or requiring supervised institutions to close accounts based on reputation risk. The regulation defines reputation risk as any factor negatively impacting public perception that is not clearly and directly tied to an institution's financial or operational condition, while explicitly refraining from imposing new obligations on supervised entities. Codified through updated examination manuals and effective sixty days after publication, the rule ensures that political, social, cultural, or religious views and constitutionally protected speech cannot serve as the sole basis for regulatory action.