OPINION: US bank supervisors downplay reputational risk – but it won’t go away

Maybe reputation has loomed too large in risk assessment but, says Julie DiMauro, it would be unwise to disregard it entirely.

The US Federal Reserve said it has directed its supervisors to no longer consider “reputational risk” in its oversight of banks, adding that it is combing through its documentation to replace the term “reputation risk” with more specific examples of “financial risk.”

The removal of reputational risk will apply to

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