Agencies Seek Feedback on Proposed Third-Party Risk Management Guidance

The Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration, and Office of the Comptroller of the Currency have jointly requested feedback on proposed guidance to help financial institutions manage third-party risks. This new guidance aims to assist banks and credit unions in aligning their third-party risk management practices with individual relationships.

The agencies' supervisory experience has informed the development of this guidance, which takes a principles-based approach. It is non-binding, as is all supervisory guidance. The agencies plan to rescind existing third-party risk management guidance once finalized and replace it with the new version to promote consistency in the banking industry.

Comments on the proposed guidance are due within 60 days of its publication in the Federal Register. Separately, the federal bank regulatory agencies have issued a statement on community banks' engagement with core service providers. This statement outlines factors considered in supervisory and enforcement decisions related to these core providers.