OCC And FDIC Finalize Standards For Unsafe Or Unsound Practices And MRAs

On August 27, the OCC and FDIC announced a final rule defining “unsafe or unsound practice” for purposes of Section 8 of the Federal Deposit Insurance Act and revising the agencies’ framework for Matters Requiring Attention (MRAs) and other supervisory communications. The final rule, which takes effect November 2, 2026, is intended to focus supervision and enforcement on material financial risks and compliance with banking and banking-related laws and regulations.

The final rule establishes new regulatory standards governing when the OCC and FDIC may identify unsafe or unsound practices and issue MRAs. Specifically, the final rule:

• Defines “unsafe or unsound practice.” A practice, act, or failure to act must be contrary to generally accepted standards of prudent operation and must have materially harmed, or if continued be likely to materially harm, the institution’s financial condition or present a material risk of loss to the Deposit Insurance Fund.