The Office of the Comptroller of the Currency announced on September 11, 2026 that it is proposing to tailor third-party risk management to actual risk, while providing greater clarity regarding supervision and enforcement of core service providers. The proposal is framed as part of a broader effort to empower community banks and reduce regulatory burden. According to the OCC, the proposed guidance would help banks focus resources on third-party relationships based on the magnitude and likelihood of potential harm actually posed by each relationship.
The guidance would move away from overly broad, process-driven approaches and make clear that there is no one-size-fits-all approach to third-party risk management. It would tailor risk management to each bank's size, complexity, and risk profile, while encouraging responsible innovation. The OCC also addressed situations where community banks face challenges with due diligence, ongoing monitoring, and contract terms involving core service providers. Comptroller of the Currency Jonathan V. Gould tied the action to the administration's agenda, saying, "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."
The supported implication is that community banks may gain greater flexibility to manage risk and offer innovative products and services, potentially enhancing their ability to serve customers, support local businesses, and strengthen their communities. The OCC said it remains committed to addressing challenges for community banks and has taken a series of actions to rightsize regulatory burden and tailor supervisory activities. The announcement lists these actions but does not detail them in the available text, leaving the full scope of prior and future measures partially unspecified.
What remains unknown is the specific content of the proposed guidance beyond the summary statements, including any new definitions, thresholds, or timelines for implementation. The OCC release does not include the full proposal text, comment period details, or data on how many community banks or core service providers would be affected. It also does not quantify the expected reduction in compliance burden or describe how the agency will measure whether the changes achieve the stated community bank comeback goals.