FDIC and OCC Propose Definition for 'Unsafe or Unsound Practices'

October 10, 2025 - 20:04

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have put forth a Notice of Proposed Rulemaking aimed at clarifying the definition of what constitutes an “unsafe or unsound practice” in the banking sector. This initiative is part of a broader effort to enhance regulatory clarity and promote stability within the financial system.

By establishing a clear definition, the agencies aim to provide banks and financial institutions with a better understanding of the standards they are expected to meet. This move is expected to facilitate more consistent regulatory oversight and ensure that institutions are held accountable for practices that could jeopardize their safety and soundness.

Stakeholders in the banking industry are encouraged to review the proposed rule and provide feedback. The agencies believe that input from the public and industry participants will be crucial in shaping a framework that effectively addresses potential risks while fostering a safe banking environment.