The U.S. Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued a final rule for banks related to financial risks and compliance with banking regulations.
Specifically, the final rule establishes a uniform definition for the term “unsafe or unsound practice” for the purposes of the agencies’ enforcement actions. The definition will promote greater clarity and certainty regarding certain enforcement and supervision standards and ensure that examiners prioritize concerns related to material financial risks over those regarding policies, process, documentation, and other non-financial risks.
In addition, the final rule establishes uniform standards for when and how the agencies may, as part of the examination process, issue Matters Requiring Attention (MRAs) and communicate supervisory observations and other violations of laws and regulations.
In the final rule, the agencies clarify how the agencies will tailor their use of the unsafe or unsound practices definition and the MRA standard based on risk factors specific to an institution. The final rule also explicitly limits its scope to institutions the agencies supervise.
The agencies said that the final rule is consistent with the objectives of the agencies’ proposal issued in October 2025,. However, it does include certain modifications to clarify how the agencies will exercise their enforcement and supervisory authority.