By Pete Schroeder
Aug 27 (Reuters) – A pair of U.S. banking regulators announced on Thursday they had finalized rules that set formal definitions for “unsafe and unsound” practices by banks, giving examiners firm guidelines for how to police lenders.
The Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation finalized the rules, which they had first proposed in October, marking the first time a bank regulator formally defined what actions government examiners should consider improper.
The agencies said in a joint statement the new definitions will provide “clarity and certainty” in bank examinations, and come as the Trump administration works to overhaul how the government polices banks.
The Federal Reserve, which shares responsibility for supervising banks and oversees some of the nation’s largest institutions, has yet to issue its own proposal defining such activities.
As part of the supervision overhaul, regulatory heads have argued that examiners need to refocus on core financial risks at banks, contending that examiners have become overly focused on dinging banks for minor issues.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Cynthia Osterman)
