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.
Examination Procedures and Manual Updates
Laws and Regulations
Supervisory Guidance
April 7, 2026
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Summary: On April 7, 2026, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (the agencies) jointly issued a final rule to codify the removal of reputation risk from their supervisory programs. Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions. Highlights: Final Rule The final rule prohibits the agencies from criticizing, formally or informally, or taking adverse action against a supervised institution or any employee of an institution on the basis of reputation risk. The final rule also prohibits the agencies from requiring, instructing, or encouraging an institution to close customer accounts or take other actions on the basis of a person’s or entity’s political, social, cultural, or religious views or beliefs, constitutionally protected speech, or solely on the basis of politically disfavored but lawful business activities perceived to present reputation risk. The final rule does not impose requirements or obligations on supervised institutions. The final rule defines “reputation risk” as any risk, regardless of how that risk is labeled, that an action or activity of an institution could negatively impact public perception of the institution for reasons not clearly and directly related to the financial or operational condition of the institution. The final rule takes effect 60 days after the date of publication in the Federal Register . FDIC Examination Manuals and Other Documents References to reputation risk were removed from the following FDIC examination manuals and other documents: Risk Management Manual of Examination Policies ; Application Procedures Manual ; Trust Examination Manual ; Applying For Deposit Insurance – A Handbook for Organizers ; and Consumer Compliance Examination Manual . The FDIC will continue to work with the other federal banking agencies to remove references to reputation risk from interagency materials.
FIL-13-2026
Attachment(s)
Final Rule: Prohibition on the Use of Reputation Risk by Regulators
Related Topics
Examination Processes and Procedures
Contact(s)
Division of Depositor and Consumer Protection
Division of Risk Management Supervision
Legal Division