Agencies propose guidance on third-party relationships

Federal banking regulators proposed interagency guidance designed to help banks manage risks associated with third-party relationships, including those with fintech entities.

Guidance: The proposed guidance:

• Offers a framework of sound risk management principles.
• Promotes compliance with all applicable laws and regulations.
• Accounts for the level of risk, complexity, and size of the banking organization and the nature of the third-party relationship.

More: Open for a 60-day comment period, the proposal would replace each agency’s existing guidance on this topic and would be directed to all institutions supervised by the agencies.

ICBA Position: ICBA has urged the agencies to provide more substantive guidance to help establish consistent expectations governing third-party relationships.