US Banking Regulators Extend Deadline for Third-Party Risk Management Rules

November 14, 2026 | By Semahegn Nigatu

US banking regulators have extended by one month the deadline for banks, credit unions and other interested parties to comment on proposed guidance governing financial institutions' relationships with third-party service providers.

The Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, National Credit Union Administration (NCUA) and Office of the Comptroller of the Currency (OCC) said on November 13 that the consultation period would now close on December 16, instead of November 16.

The proposed guidance seeks to help banks and credit unions assess and manage risks arising from relationships with external service providers, drawing on supervisory experience and lessons from examinations of financial institutions' existing risk management practices.

The agencies are proposing a principles-based framework that would allow institutions to tailor their risk management arrangements to the nature and level of risk associated with individual third-party relationships. The guidance would be non-binding and would not create new legal requirements.

Once finalised, the guidance is expected to replace existing third-party risk management guidelines issued by the federal banking regulators, with the aim of promoting consistency across the industry while allowing room for innovation.

The NCUA also plans to withdraw its existing guidance and separately review related materials to determine whether updates are necessary.

Separately, the Federal Reserve announced an extension of the consultation period for a proposed third-party risk management guide specifically designed for traditional community banks under its supervision. Comments on that proposal will also be accepted until December 16.

The proposals come amid growing regulatory attention to the risks financial institutions face through their reliance on external service providers. The consultation process will allow industry participants to provide feedback before the agencies finalise the guidance.

Source: FSX Business News