It is said that the Federal Deposit Insurance Corporation, an independent agency in the federal government, is said to stop using the “reputation risk” category as a way to supervise banks.
According to For a message sent by the Acting Chairman, Travis Hill, to Representative Dan Miter, on March 24, bank organizers should not use “reputable risks” to check companies.
“While the bank’s reputation is very important, most of the activities that can threaten the bank’s reputation do this through traditional risk channels (for example, credit risks, market risk, etc.) that supervisors already focus on,” the message indicates first. I mentioned By politico.
According to the document, FDIC has completed a “review of all reputable risks” in its political regulations and documents, and “plans to eliminate this concept of our organizational approach.”
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Reputation risks and Debanking
Federal Reserve identification The reputable risks will work as “the possibility of negative propaganda related to the commercial practices of the institution, whether correct or not, will lead to a decrease in the customer base, the costly litigation or revenue reduction.”
The FIDC letter mentioned digital assets specifically, as Hill indicated that the agency “was generally closed for business” for institutions interested in the technician of the distributed professor’s book. Now, according to the document, the FDIC is working on a new direction for the digital asset policy that aims to provide banks with interaction with digital assets.
The message was sent in response to the February contact from Meuser and other lawmakers who have recommendations for digital assets and methods of preventing Debanking.
Industries that are considered “risky” are often facing major challenges in creating or maintaining banking relationships. The encryption industry faced such challenges during what became known as the CokePoint 2.0 operation.
The unofficial process led to the rejection of more than 30 technology and coiling currency companies from banking services in the United States after the collapse of friendly banks to encrypt earlier in 2023.
Related to: FDIC resists transparency on CokkePoint 2.0 – Coinbase Clo
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