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The move follows the US Office of the Comptroller of the Currency ceasing examinations for reputational risk.<\/p>\n
The US Federal Deposit Insurance Corporation, an independent agency of the federal government, is reportedly moving to stop using the \u201creputational risk\u201d category as a way to supervise banks. <\/p>\n
According<\/a> to a letter sent by the agency\u2019s acting chairman, Travis Hill, to Rep. Dan Meuser on March 24, banking regulators should not use \u201creputational risk\u201d to scrutinize firms. <\/p>\n \u201cWhile a bank\u2019s reputation is critically important, most activities that could threaten a bank\u2019s reputation do so through traditional risk channels (e.g., credit risk, market risk, etc.) that supervisors already focus on,\u201d notes the letter, first reported<\/a> by Politico. <\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n