Washington, D.C. (June 7, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on Federal Reserve Governor Michelle Bowman’s statement regarding interagency third-party risk management guidance.
“ICBA and the nation’s community banks commend Governor Bowman for her common-sense recommendations to improve newly released interagency guidance on third-party risk management.
“In a statement on why she can’t support the interagency guidance, Bowman said it does not provide the necessary clarity or supplemental tools to facilitate community bank implementation. Further, Bowman noted that while the guidance says the agencies plan to develop additional resources to assist community banks in managing relevant third-party risks, it provides no timeline for developing these resources.
“In a 2021 comment letter on the guidance proposal, ICBA advocated consolidating third-party risk management guidance, more fully recognizing the potential benefits of community bank-fintech partnerships, and structuring the guidance so it can be further tailored. ICBA looks forward to continuing to work with the agencies to produce community bank-focused resources that will facilitate implementation and sound risk management of third-party relationships.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.