PANews reported on February 24 that following previous steps to remove reputational risk from banking regulation, the Federal Reserve Board of Governors on MondayPANews reported on February 24 that following previous steps to remove reputational risk from banking regulation, the Federal Reserve Board of Governors on Monday
The Federal Reserve is considering including "reputational risk" in its regulatory rules and is seeking 60 days for comments.
PANews reported on February 24 that following previous steps to remove reputational risk from banking regulation, the Federal Reserve Board of Governors on Monday solicited comments for 60 days on a proposal aimed at formally enshrining this removal in law. The proposal formally removes "reputational risk" from bank inspections/regulations and reiterates that banks cannot be penalized or required to "debank" themselves because customers engage in legitimate activities. Vice Chairman Bowman stated that there have been cases of "debanking" due to political/religious reasons or legitimate but unpopular industries. Bitcoin Magazine suggests this move could alleviate regulatory pressure on crypto businesses facing "debanking."
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