The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have issued a final rule aimed at focusing examiners' and institutions' attention on material financial risks and compliance with banking laws and regulations. This rule, consistent with an October 2025 proposal, includes modifications to clarify how the agencies will exercise their enforcement and supervisory authority.
The new rule establishes a uniform definition for "unsafe or unsound practice" for enforcement actions and supervisory activities under 12 U.S.C. § 1818. This definition seeks to provide greater clarity and certainty, ensuring examiners prioritize material financial risks over nonfinancial concerns like policies, processes, or documentation.
Furthermore, the final rule sets uniform standards for issuing Matters Requiring Attention (MRAs) and communicating supervisory observations or violations during examinations. The agencies will tailor the application of the "unsafe or unsound practices" definition and MRA standards based on an institution's specific risk factors, with its scope explicitly limited to institutions supervised by the agencies.