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The interagency guidance on third-party relationships proposed by three banking regulators highlights the risks financial institutions face as banks increasingly rely on outside vendors and fintech companies for products and services.
The 93-page guidance document takes into account the level of risk, complexity and the size of a banking organization as well as the nature of the third-party relationship, and is intended to help promote compliance, including with laws and regulations related to consumer protection, the agencies said. The agencies said the proposed guidance would replace each agency’s existing guidance on the topic and would be directed to all banking organizations supervised by the agencies. The public would have 60 days to submit comments after the proposal is published in the Federal Register.
