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Regulating Bank Reputation Risk, Julie A. Hill
Regulating Bank Reputation Risk, Julie A. Hill
Georgia Law Review
In the aftermath of a school shooting in Florida, the
New York State bank regulator urged banks to manage
the “reputation risk” posed by doing business with the
National Rifle Association (a gun rights advocacy
group). As part of Operation Choke Point, a federal
regulator told banks to end relationships with payday
lenders because those activities posed “reputation risk.”
Another federal regulator warns banks their reputations
might be damaged by lending to oil and gas companies
that are perceived to cause environmental harm.
Reputation risk is the risk that bank stakeholders will
negatively change their perception of the bank. It …