Trump Bank Exam Changes Spell Biggest Overhaul Since 2008 Crisis

Bank supervision in the US is undergoing its most dramatic overhaul since the 2008 financial crisis, prompting concerns that dangers in the banking system will build while examiners limit their focus to “material” financial risks.

The Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency have all announced plans in recent weeks for their examiners to look primarily at capital, liquidity, credit quality, and other issues that pose a direct threat to a bank’s stability, among other significant changes.

On the way out are reviews of reputation risk—following charges that ...