Feds Ban Reputation Risk as Tool to Punish Banks' Views
Published Date: 4/10/2026
Rule
Summary
Starting June 9, 2026, banks and financial institutions won’t be punished or pressured by regulators for reputation risk tied to political, social, cultural, or religious views. The OCC and FDIC can no longer force or encourage banks to close accounts or stop services based on lawful but unpopular activities or speech. This change protects institutions and their customers from unfair treatment and keeps the focus on real risks, not opinions.
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
No Regulator Pressure To Close Accounts
From June 9, 2026, the OCC and FDIC may not require, instruct, or encourage banks to close accounts, refuse to provide accounts or services, or modify/terminate services on the basis of a person's or business's political, social, cultural, or religious views, constitutionally protected speech, or lawful but politically disfavored activities. The rule is designed to protect customers and lawful businesses from regulator-driven debanking or service denials.
Ban on Reputation Risk Supervisory Use
Starting June 9, 2026, the OCC and the FDIC are prohibited from criticizing or taking adverse supervisory action against a bank or financial institution on the basis of "reputation risk." The rule removes reputation risk as a standalone basis for supervisory criticism, keeping supervision focused on concrete financial and operational risks.
Adverse Supervisory Tools Restricted
The rule bars agencies from taking "adverse action" for reputation risk, and defines adverse action to include negative feedback in reports, Matters Requiring Attention, downgrades of supervisory ratings, denial of filings or licenses, imposition of capital requirements above minimums, and other burdensome approval conditions. Agencies cannot use these tools when the action is based on reputation risk.
Fraud, Discrimination Rules Still Enforced
The rule does not change existing laws or supervisory expectations that banks detect and prevent fraud, illegal activity, discriminatory or predatory practices, or other violations of law. Examinations for traditional risks like credit, liquidity, operational, cybersecurity, and illicit finance continue.
Public Complaint Channels Remain Available
The OCC and FDIC continue to provide public complaint channels where individuals can report unfair debanking or discrimination: the OCC's https://helpwithmybank.gov/ and the FDIC's https://ask.fdic.gov/ complaint portals. These channels allow customers to report suspected reputation-risk-based denials or closures.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2025-21626 — Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Big U.S. banks that are super important to the economy are getting new rules to keep them safer and stronger. These changes tweak how much money they must keep on hand and how they handle long-term debt, helping prevent financial trouble. The new rules kick in soon and could affect how these banks manage billions in assets and debt.
2026-08298 — Regulatory Capital Rule: Community Bank Leverage Ratio Framework
Starting July 1, 2026, small community banks can meet a lower leverage ratio of 8% instead of 9%, making it easier to qualify for a simpler capital rule. Plus, banks now have more time—up to four straight quarters instead of two—to stay in this easier framework even if they don’t meet all the rules, helping them manage their money better without rushing. This change helps community banks save time and money while keeping things safe and sound.
2026-06948 — Anti-Money Laundering and Countering the Financing of Terrorism Programs
Banks and credit unions will need to step up their game with stronger programs to stop money laundering and terrorism funding. These new rules, matching updates from FinCEN, aim to make spotting bad money easier and improve how the government supervises these efforts. Comments on the proposal are open until June 9, 2026, so the financial world has a chance to weigh in before changes kick in.
2025-22481 — Proposed Agency Information Collection Activities; Comment Request
The Treasury, Federal Reserve, and FDIC are updating important bank reports called Call Reports, which big banks use to share financial info. These changes, starting June 30, 2026, tweak how banks report certain capital rules to keep things clear and fair. If you have thoughts, you’ve got until January 12, 2026, to speak up—no cost to respond, but your input matters!
2025-21625 — Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework
The government wants to make it easier for small banks to stay in a special low-risk capital program by lowering the required leverage ratio from 9% to 8%. They’re also giving banks more time—up to four quarters instead of two—to fix any issues without losing their spot. Banks and bank holding companies should weigh in by January 30, 2026, as these changes could save them money and reduce red tape.
2025-06748 — Temporary Exceptions to FIRREA Appraisal Requirements in Los Angeles County as Affected by California Wildfires and Straight-Line Winds
If you’re dealing with real estate loans or sales in Los Angeles County after the recent wildfires and strong winds, good news! The usual strict property appraisal rules are temporarily relaxed to help speed things up. These special rules last until January 8, 2028, giving banks and buyers more flexibility during recovery.
Previous / Next Documents
Previous: 2026-06891 — Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate
Grape growers and handlers in southeastern California will pay less for their 18-pound grape lugs starting May 11, 2026. The assessment rate drops from 4 cents to 3 cents per lug, saving money for those involved in the grape business. This lower fee will stay in place until any future changes are made.
Next: 2026-06951 — Multi-Family Housing Simple Transfer Pilot Program
The USDA’s Rural Housing Service is extending its Simple Transfer Pilot Program through the end of 2027. This program makes it easier and cheaper for owners of certain farm labor and rural rental housing to transfer property by cutting down on paperwork and speeding up approvals. If it works well, these simpler rules might become permanent, helping keep affordable housing in good shape.