WASHINGTON—National banks and financial institutions will no longer be assessed for reputational risk as part of their exams, according to the Office of the Comptroller of the Currency (OCC).

The OCC said that under its Bulletin 2025-4, it is removing references to banks’ reputation risk from its Comptroller’s Handbook booklets and guidance issuances. Examiners have also been told “they should no longer examine for reputation risk,” according to the OCC.

“The OCC has never used reputation risk as a catch-all justification for supervisory action,” the agency said in a statement “Rather, the OCC has focused primarily on the risks to a bank’s current or projected financial condition and resilience arising from negative public opinion.”

‘Improved Transparency’

The OCC, which is headed by former NCUA Board Member and Chairman Rodney Hood, said it  believes removing references to reputation risk will improve transparency and confidence in the supervisory process.

For handbooks and guidance issuances issued jointly with other regulators, the OCC said it will work with those regulators to expeditiously remove references to banks’ reputation risk.