Agencies extend comment period for 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 extended the deadline for comments on proposed third-party risk management guidance until December 16. Initially, comments were due November 16. The proposed guidance draws from the agencies' experiences with financial institutions' third-party risk management practices and aims to assist banks and credit unions in customizing their risk management strategies for each third-party relationship.

The guidance follows a principles-based approach and, like other supervisory guidance, is non-binding. Upon completion, the federal bank regulatory agencies intend to replace existing third-party risk management guidance with the finalized version to ensure consistency and foster innovation in the banking sector. The National Credit Union Administration also plans to rescind its third-party risk management guidance and conduct its own reviews to update related guidance as required.

Additionally, the Federal Reserve Board separately extended the comment period until December 16 for a proposal specific to Federal Reserve-supervised traditional community banks.