The Federal Reserve will no longer incorporate reputational risk into bank examinations.

The Federal Reserve announced on Monday that it will no longer include reputational risk in bank examinations. The central bank stated that it has begun reviewing regulatory materials related to reputational risk and will replace them with more specific financial risk discussions at the appropriate time. "This adjustment does not change the Federal Reserve's expectation for banks to maintain strong risk management to ensure safety and soundness," the Federal Reserve stated in a release.