FDIC and OCC Finalize Rule on Unsafe Banking Practices

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have jointly issued a final rule defining "unsafe or unsound practice" for the Federal Deposit Insurance Act. This revision aims to clarify supervisory standards and focus attention on material financial risks and compliance. The new definition seeks to provide greater certainty in enforcement and supervision for banking institutions.