WASHINGTON–Three federal bank regulatory agencies have issued final joint guidance they said is designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies.
The final guidance, from the Federal Reserve, Treasury and the FDIC, describes principles and considerations for banking organizations’ risk management of third-party relationships.
“The final guidance covers risk management practices for the stages in the life cycle of third-party relationships: planning, due diligence and third-party selection, contract negotiation, ongoing monitoring, and termination,” the regulators said in a statement.
According to the government, the final guidance includes illustrative examples to help banking organizations, particularly community banks, align their risk management practices with the nature and risk profile of their third-party relationships.
The agencies said they plan to engage with community banks immediately and develop additional resources in the near future to assist them in managing relevant third-party risks.
Promoting ‘Consistency’
The final guidance replaces each agency’s existing general third-party guidance and promotes consistency in the agencies’ supervisory approaches toward third-party risk management.
“The final guidance reflects streamlined language and improved clarity based on the agencies’ consideration of public comments on the proposed guidance released in July 2021,” the agencies added.
Are You Missing the News? We Can Help. For Free!
Are you missing out on the latest news in credit unions? Missing the trends and developments you need to be aware of? We can help. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
And it’s free!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com