Unsafe or Unsound Practices, Matters Requiring Attention
Key claim: The OCC and FDIC are issuing a final rule that defines what counts as an “unsafe or unsound practice” under federal banking law and changes how examiners issue Matters Requiring Attention and other supervisory notices to banks.
Abstract
(Rule · Treasury Department, Comptroller of the Currency, Federal Deposit Insurance Corporation) The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are adopting a final rule to define the term “unsafe or unsound practice” for purposes of section 8 of the Federal Deposit Insurance Act and to revise the supervisory framework for the issuance of matters requiring attention and other supervisory communications.
Why this matters
The ‘unsafe or unsound practice’ standard is a foundational trigger for a wide range of federal bank enforcement powers, and Matters Requiring Attention are the primary informal supervisory tool examiners use to demand changes at banks. Codifying a definition and revising the MRA process narrows examiner discretion and gives banks clearer notice of what conduct can escalate to formal action, marking a notable shift in the supervisor–bank relationship.