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Comment Period: Prohibition on Use of Reputation Risk or Other Supervisory Tools To Encourage or Compel Banking Organizations To Engage in Politicized or Unlawful Discrimination

AGENCY:

Board of Governors of the Federal Reserve System.

ACTION:

Notice of proposed rulemaking.

SUMMARY:

Following earlier actions to remove reputation risk from its supervision of banks, the Federal Reserve Board has requested comment on a proposal to codify that removal. The proposal reiterates the Board’s policy against penalizing or prohibiting an institution from banking a customer engaged in legal activity.This change does not alter the Board’s expectation that banks maintain strong risk management to ensure safety and soundness and compliance with law and regulation.

DATES:

Comments must be received on or before April 27, 2026.

https://www.federalregister.gov/documents/2026/02/26/2026-03818/prohibition-on-use-of-reputation-risk-or-other-supervisory-tools-to-encourage-or-compel-banking

  • April 27, 2026
  • Time: All Day
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