US Bank Regulators FDIC, OCC Narrow Bank Enforcement To Financial Risk & Legal Breaches

US banking regulators have finalised rules that will focus supervision and enforcement on financial risks that could materially affect banks, Reuters reported.

The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) said the changes establish a common definition of an “unsafe or unsound practice” and set standards for Matters Requiring Attention (MRAs), which regulators use to identify deficiencies. Under the new approach, examiners will give greater attention to risks involving a bank’s financial position, liquidity and safety, while technical issues involving policies, documentation and processes may be handled outside the formal MRA system.

The changes follow criticism of bank supervision after Silicon Valley Bank collapsed in 2023, when regulators had raised concerns about governance and controls while interest-rate and liquidity risks contributed to the failure.

The rules are part of changes to US banking supervision under the Trump administration and apply to institutions overseen by the OCC and FDIC.