Timeline

The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation adopted a final rule defining "unsafe or unsound practice" for purposes of section 8 of the Federal Deposit Insurance Act on August 31, 2026. The document was filed on August 31, 2026, and the final rule revises the supervisory framework for the issuance of matters requiring attention and other supervisory communications on that same date. The final rule is designated as Document Number 2026-17823, and the final rule document is 65 pages in length as of August 31, 2026.

The rule was published in the Federal Register on September 1, 2026, where the final rule appears at 91 FR 56004. The rule becomes effective on November 2, 2026.

What's New

Additional reporting indicates the final rule defines "unsafe or unsound practice" as conduct that poses a material risk of loss to the Deposit Insurance Fund (DIF). Further context identifies the Federal Deposit Insurance Corporation as a US government agency providing deposit insurance.

Why It Matters

The adoption of this rule clarifies the statutory authority granted under Section 8 of the Federal Deposit Insurance Act, which permits the OCC and FDIC to enforce standards against depository institutions and affiliated parties. By defining "unsafe or unsound practice" as conduct posing a material risk of loss to the Deposit Insurance Fund, the agencies establish a concrete threshold for regulatory intervention.

This definition directly links supervisory actions to the financial stability of the Deposit Insurance Fund. The revision of the supervisory framework for matters requiring attention provides a structured approach for identifying and addressing practices that meet this new standard before they result in losses.