The Office of the Comptroller of the Currency (OCC) announced on September 11, 2026, that it is moving to reduce regulatory burden for community banks by proposing new third-party risk management guidance tailored to the actual risks posed by each vendor relationship. The proposal would replace overly broad, process-driven requirements with a principles-based approach that accounts for a bank's size, complexity, and risk profile.
At the same time, the OCC issued a statement clarifying how it will supervise and enforce standards for core service providers used by community banks. The aim is to address challenges banks face in due diligence, ongoing monitoring, and contract terms, giving institutions more flexibility to manage risk and offer innovative products and services.
Comptroller of the Currency Jonathan V. Gould said: “President Trump and Secretary Scott Bessent are leading the historic community bank comeback because they understand that strong community banks mean stronger communities, greater opportunity for American families and businesses, and a stronger American economy. Today, we are cutting unnecessary regulatory friction, tailoring supervision to actual risk, and strengthening community banks’ ability to manage critical third-party relationships.”
In a related action, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the OCC jointly requested public comment on the proposed guidance. The agencies said the guidance is non-binding and principles-based. Once finalized, it will replace existing third-party risk management guidance to promote consistency and prudent innovation. Comments are due 60 days after publication in the Federal Register.
Additionally, the Federal Reserve Board separately requested comment on a proposed third-party risk management guide designed specifically for Federal Reserve-supervised community banks, intended as a companion document to the interagency proposal.
