REGULATION · US
Federal regulators propose overhaul of third-party vendor risk management for all depository institutions
The Fed, FDIC, OCC, and NCUA jointly proposed replacing legacy third-party risk guidance with updated standards addressing concentration risk, critical vendor lock-in, and AI vendor dependency. Deadline for comment not yet announced.
WHY IT MATTERS
Codifies vendor concentration as a prudential risk category; forces banks to map and stress-test AI model provider dependencies and contractual exit terms—directly impacts AI deployment strategy.
Source: PYMNTS · 2026-09-14