US financial regulators are scaling back bank examinations and enforcement, prioritizing core financial metrics like capital, liquidity, and risk management over non-core areas such as climate, diversity, and reputational risk. Agencies including the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Consumer Financial Protection Bureau (CFPB) are postponing or reducing some exams and moving away from formal disciplinary notices toward informal guidance.

According to Reuters, the shift aims to align oversight with banks’ risk profiles and support economic growth, but critics warn it may overlook systemic risks highlighted by the 2023 bank collapses. Industry leaders welcome the move, calling previous processes overly complex, while some banks have pursued legal action over fairness and transparency.