Regulators rewrite vendor-risk guidance and flag community banks' dependence on core providers

Four federal regulators have proposed replacing their guidance on how banks and credit unions manage outside vendors with principles-based guidance tailored to the risk of each relationship. Comments are due 60 days after Federal Register publication. Separately, the Federal Reserve, FDIC and Comptroller of the Currency issued a statement on community banks' reliance on core service providers, the vendors that run banks' core systems, saying certain provider business practices and market dynamics may make it harder for banks to manage those risks. The Fed also proposed a companion guide for community banks it supervises.

The wall: statement unread; providers unnamed

Tier: Confirmed (statement wording via trade press)

Sources

• federalreserve.gov/newsevents/pressreleases/bcreg20260911a.htm
• pymnts.com/?p=4182279

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