The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) issued a final rule to enhance focus on material financial risks during examinations. The rule establishes a uniform definition for ‘unsafe or unsound practice’ under 12 U.S.C. § 1818, clarifying enforcement and supervisory standards. It prioritizes risks related to financial stability over nonfinancial factors like policies or documentation. The agencies also standardized criteria for issuing Matters Requiring Attention (MRAs) during exams and outlined how to tailor risk-based applications of the rule. The final rule, consistent with a 2025 proposal, explicitly applies only to institutions under the agencies’ supervision. Modifications aim to improve clarity and ensure examiners address significant financial risks first.
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