The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have finalized a rule requiring regulators to show that a bank’s conduct created substantive financial risk or violated the law before deeming it an "unsafe or unsound" practice and pursuing enforcement action.
The change sets a higher evidentiary threshold for supervisory action against banks. The rule was reported on August 28 and applies to determinations made by the OCC and FDIC when evaluating alleged unsafe or unsound practices.
OCC and FDIC Finalize Rule Raising Standard for 'Unsafe or Unsound' Bank Findings
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