The Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Currency extended the public comment period for proposed guidance on managing risks from third-party relationships, the agencies said Friday. The new deadline is Dec. 16. Comments were previously due Nov. 16, according to the joint release.
The agencies said the proposal reflects their supervisory experience and lessons from examining financial institutions’ third-party risk management practices. They said it is intended to help banks and credit unions tailor their risk management to the risks in specific third-party relationships. The agencies described the approach as principles-based and, like all supervisory guidance, non-binding.
Comment period extensions on third-party risk guidance
Item
New deadline
Applies to
Proposed Third-Party Risk Management Guidance
Dec. 16
Banks and credit unions
FRB proposed community bank guide
Dec. 16
Federal Reserve-supervised traditional community banks
Source: Federal Deposit Insurance Corporation.
When a final version is issued, the federal bank regulatory agencies plan to rescind existing third-party risk management guidance and replace it with the finalized guidance to promote consistency and prudent innovation in the banking industry, the release said. The National Credit Union Administration also plans to rescind its existing third-party risk management guidance and will conduct its own reviews to update related guidance as needed.
Also Friday, the Federal Reserve Board separately announced that it will extend, until Dec. 16, the comment period on a proposed third-party risk management guide specifically for Federal Reserve–supervised traditional community banks.
The joint release included links to the proposed guidance and to a Federal Register notice announcing the extension.
