U.S. Financial Regulators Propose New Guidance on Third-Party Risk Management for Banks and Credit Unions

The National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) have jointly requested public comment on proposed guidance aimed at helping financial institutions manage risks associated with third-party relationships. The proposed guidance, which is principles-based and non-binding, seeks to align and tailor risk management practices to individual third-party risks. The Federal Reserve Board also separately requested comment on a companion guide specifically for Federal Reserve-supervised community banks. This initiative aims to promote consistency and prudent innovation in the banking industry.