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.