An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Depository institution

A financial organization that accepts deposits from the public, such as banks and credit unions.

Federal banking agency

Government bodies responsible for regulating and overseeing banks and credit unions, such as the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Reputational risk

The potential for negative publicity or public opinion about a bank's business practices (even if true or not) to cause a decline in confidence, loss of customers, lawsuits, or reduced income. This bill specifically excludes negative publicity related to illegal transactions with state sponsors of terrorism or foreign terrorist organizations from this definition.

Supervision of depository institutions

The process by which federal banking agencies oversee banks and credit unions to ensure they are operating safely, soundly, and in compliance with laws and regulations.

Safety and soundness

The primary objective of financial regulation, meaning that banks are financially healthy, well-managed, and able to withstand economic shocks, protecting depositors and the stability of the financial system.

Operation Choke Point

A U.S. government initiative from 2013-2017 that scrutinized banks doing business with certain industries, which some critics argued used 'reputational risk' to limit access to financial services for legal businesses deemed 'high risk' by regulators.