Fed Proposes Removing 'Reputation Risk' from Bank Supervision Amid Debanking Concerns

Fed Proposes Removing 'Reputation Risk' from Bank Supervision Amid Debanking Concerns

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Categories: Regulation Banking Policy

The Federal Reserve has initiated a public comment period regarding its proposal to eliminate 'reputation risk' as a factor in bank supervision. This move is aimed at directly addressing growing concerns about 'debanking,' where financial institutions refuse services to certain sectors, including parts of the crypto industry, due to perceived reputational hazards.

The Fed has opened a comment period on removing "reputation risk" from bank supervision, aiming to address debanking concerns.