Agencies Seek Comment on Proposed Third-Party Risk Management Guidance and Issue Statement on Community Bank Engagement with Core Service Providers
Today the Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the agencies) requested comment on proposed guidance to assist financial institutions with managing risks associated with third-party relationships. The proposed guidance reflects the agencies’ supervisory experience and lessons learned from examining…
Agencies Reduce Regulatory Burden for Community Banks, Increase Eligibility for 18-Month Exam Cycle
The federal bank regulatory agencies today issued an interim final rule increasing the number of community banks eligible for an 18-month exam cycle. The 21st Century ROAD to Housing Act increased the total asset threshold from $3 billion to $6 billion for certain supervised institutions to qualify for an extended 18-month on-site exam cycle. Extending…
ICBA: ICBA Reiterates Strong Concerns with Federal Reserve Payment Account Proposal
The Independent Community Bankers of America (ICBA) today expressed strong concerns with the Federal Reserve Board’s proposed special-purpose payment accounts for nonbank financial institutions and urged the agency to ensure any such program is temporary. “The Federal Reserve’s proposed payment account for eligible nonbank institutions continues to face an inescapable problem: the Fed shouldn’t extend…
ABA: ABA & CBA Urge Federal Reserve to Strengthen Safeguards for Proposed Payment Accounts
The American Bankers Association and Consumer Bankers Association today submitted a joint comment letter supporting the Federal Reserve’s proposed Payment Account framework as a prudent approach to responsible innovation if additional safeguards are adopted to protect the safety, soundness and integrity of the U.S. payments system. The associations said the proposal represents a measured approach to expanding…
Agencies Issue Joint Statement on Handling of Highly Sensitive Information During Bank Examinations
The federal bank regulatory agencies today issued a joint statement describing enhanced security procedures for review of highly sensitive information in connection with examinations of supervised banks, such as reviewing materials on-site rather than transferring them onto agency systems. The statement discusses a coordinated approach to identifying highly sensitive data and documents and discusses enhanced…
FFIEC: Agencies Release List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies
Federal bank regulatory agencies today released the 2026 list of certain geographies where certain bank activities are eligible for Community Reinvestment Act (CRA) credit. Under the CRA, the agencies assess a bank’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The list…
Agencies Remove Additional References to Reputation Risk
The federal bank regulatory agencies today jointly updated certain interagency documents to remove references to reputation risk. The agencies are taking this action to complement their earlier actions that ended the use of reputation risk in supervision. As the agencies have previously noted, reputation risk can be misused by supervisors as a basis to encourage…
Federal Reserve: Kevin Warsh Takes Oath of Office as Chairman and a Member of the Board of Governors of the Federal Reserve System
Federal Open Market Committee Unanimously Selects Warsh as Its Chairman Kevin Warsh on Friday took the oath of office as chairman and a member of the Board of Governors of the Federal Reserve System. Also on Friday, the Federal Open Market Committee unanimously selected Warsh as its chairman. President Donald J. Trump nominated Mr. Warsh…
Federal Reserve: Board Issues Economic Well-Being of U.S. Households in 2025 Report
The Federal Reserve Board on Wednesday issued its Economic Well-Being of U.S. Households in 2025 report, which examines the financial circumstances of U.S. adults and their families. Overall, the report shows that financial well-being was consistent with recent years. Survey results indicate that the labor market remained solid, despite some softening since the previous year’s survey. Price…
Agencies Issue Host State Loan-to-Deposit Ratios
Federal bank regulatory agencies today jointly issued updated host state loan-to-deposit ratios, as required by law. Each ratio compares the total loans in a state to total deposits in the state for all banks that are legally operating in that state. These ratios replace those issued in May 2025. By law, a bank is generally prohibited…