Regulatory Alerts2025-10-07 | FIL-45-2025Agencies Issue Proposal to Focus Supervision on Material Financial Risks
The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation propose a rule defining "unsafe or unsound practice" to prioritize material financial risks over nonfinancial policy concerns. The proposal establishes uniform supervisory standards for issuing matters requiring attention and clarifies that adverse actions cannot be used to punish institutions for politically or socially disfavored but lawful activities. By codifying these definitions and communication protocols, the agencies aim to reduce regulatory uncertainty and ensure examination resources target the most critical threats to institutional financial condition.
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