Agencies seek comment on proposed third-party risk management guidance and issue statement on community bank engagement with core service providers

Agencies seek comment on proposed third-party risk management guidance and issue statement on community bank engagement with core service providers

Today the Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Official websites use .govA .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPSA lock (LockLocked padlock icon) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. For release at 10:00 a.m. EDT Share Today the Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the agencies) requested comment on proposed guidance to assist financial institutions with managing risks associated with third-party relationships.

The proposed guidance reflects the agencies' supervisory experience and lessons learned from examining financial institutions' third-party risk management practices. It is intended to assist banks and credit unions to better align and tailor their third-party risk management practices to the risks of individual third-party relationships. The proposed guidance focuses on a principles-based approach and, as with all supervisory guidance, is non-binding. When finalized, the federal bank regulatory agencies plan to rescind existing third-party risk management guidance and replace it with the