Final Rule Prohibiting Use of Reputation Risk by Regulators in Bank Supervision
Summary
The OCC and FDIC jointly issued a final rule codifying the prohibition of reputation risk from their supervisory programs. The rule defines reputation risk and explicitly bars the agencies from criticizing, taking adverse action, or instructing banks to close accounts based on political, religious, or cultural views; constitutionally protected speech; or lawful business activities perceived as reputation risks. The rule implements Executive Order 14331 aimed at ensuring fair banking access.
What changed
The final rule formally codifies the elimination of reputation risk from OCC and FDIC supervisory programs. It defines reputation risk and establishes explicit prohibitions on agencies using this concept as a basis for criticism, adverse actions, or requiring institutions to terminate customer relationships based on constitutionally protected speech, political beliefs, or lawful business activities perceived as reputation risks.\n\nBanks benefit from increased certainty that supervisory actions will not be based on reputation risk considerations tied to political, religious, or social viewpoints. Regulated institutions should document any supervisory communications that reference reputation risk concerns, as such references are now explicitly prohibited under this binding rule.
What to do next
- Review internal compliance policies to align with new prohibitions on regulatory criticism
- Monitor for implementing guidance from FDIC and OCC on supervisory procedures
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Agencies Issue Final Rule to Prohibit Use of Reputation Risk by Regulators
Joint Release
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
April 7, 2026 WASHINGTON – The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (the agencies) today jointly issued a final rule that codifies the elimination of reputation risk from their supervisory programs.
The rule defines “reputation risk” and prohibits the agencies from criticizing or taking adverse action against an institution on the basis of reputation risk. The 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 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.
This rule also responds to concerns expressed in Executive Order 14331, Guaranteeing Fair Banking for All Americans, that the use of reputation risk can be a pretext for restricting law-abiding individuals’ and businesses’ access to financial services on the basis of political or religious beliefs or lawful business activities.
Attachment(s)
Final Rule: Prohibition on the Use of Reputation Risk by Regulators
Contact(s)
FDIC: Brian Sullivan, (202)-412-1436 OCC: Stephanie Collins, (202) 649-6870
Last Updated: April 7, 2026
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