The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) have released a joint notice of proposed rulemaking aimed at refining their approach to bank supervision. The proposal seeks to define the term “unsafe or unsound practice” under section 8 of the Federal Deposit Insurance Act, providing more clarity in enforcement and supervisory standards.

According to the agencies, the new rule would ensure that supervisors focus on material financial risks rather than issues related to policies, processes, documentation, or other nonfinancial risks. The agencies also propose to standardize how matters requiring attention (MRAs) and other supervisory communications are issued during examinations. The proposal includes provisions for tailoring enforcement actions and MRAs according to specific circumstances.

“The proposed rule would promote greater clarity and certainty regarding certain enforcement and supervision standards and ensure bank supervisors prioritize concerns related to material financial risks over those regarding policies, process, documentation, and other nonfinancial risks,” the agencies stated.

Public comments on the proposal will be accepted for 60 days following its publication in the Federal Register.