Financial Institutions

Agencies Issue Final Guidance on Third-Party Risk Management.

On June 6, 2023, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of Currency (OCC) (collectively, the “Agencies”) issued a final joint guidance to help all banking organizations manage risks associated with third-party relationships, including financial technology companies (fintech). The joint guidance is intended to provide consistency in the Agencies’ supervisory approaches, and it will replace each of the separate Agencies’ current guidance on the topic.

To learn more about this guidance, click HERE.

OCC Addresses Banks with Persistent Weaknesses.

On May 25, 2023, the Office of the Comptroller of the Currency (OCC) announced revisions made to its Policies and Procedures Manual 5310-3 (PPM). The updated PPM is intended to address concerns for banks that exhibit, or fail to correct, “persistent weakness.” The PPM now includes “Appendix C: Actions Against Banks with Persistent Weaknesses” to clarify how the OCC determines if a bank has persistent weaknesses and what actions the OCC may take to address them.

To learn more about these revisions, click HERE.

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