Define unsafe or unsound practice for purposes of section 8 of Federal deposit insurance act that would focus on material risks to financial condition of institution.
Mean practice, act, failure to act, alone or together with one or more other practices, act, failures to act, that contrary to generally accepted standards of prudent operation.
If continued, is likely to materially harm financial condition of institution; or present a material risk of loss to DIF; or materially harmed financial condition of the institution
Matters Requiring Attention
Revised supervisory framework for the issuance of matters requiring attention (MRAs).
Examiner would be permitted to issue MRA to address certain risks to the financial condition of institution and violations of banking or banking-related laws, regulations.
Agencies may only issue MRA for practice, act, failure to act, alone or together with one or more practices, contrary to generally accepted standards of prudent operation.
If continued, likely to materially harm financial condition of institution; present a material risk of loss to DIF; or already caused material harm to financial condition.
Or an actual violation of a banking or banking-related law or regulation.
Phrases materially harm the financial condition of an institution, materially harmed the financial condition of an institution, material risk of loss to the Deposit Insurance Fund.
Have same meaning for MRAs as for proposed definition of unsafe or unsound practice.
Consultation
Comments on proposal due 60 days after date of publication, by Dec. 6, 2025.
Oct. 30, 2025 Fed Reg Proposal
On Oct. 30, 2025, OCC, FDIC proposed rule in fed register, comments Dec. 29, 2025.
In Dec. 2025, CSBS issued comments on unsafe or unsound practices, see #281887.
In Jan. 2025, BPI issued blog on statutes for unsafe/unsound practices, see #282899.
In Feb. 2026, Senate issued letter calling on rescission of bank proposal, #286025.
Aug. 27, 2026 FDIC Final Rule
On Aug. 27, 2026, FDIC reported Agencies published final rule, with certain modifications to clarify how will exercise their enforcement and supervisory authority.
Also, Chair Hill statement and FIL-53-2026on statement on implementation of the final rule and its supervisory and enforcement approach for implementing part 305.
Final rule is effective 60 days after date from publication in the federal register.
