News Release 2026-78|September 11, 2026
OCC Delivers on Community Bank Comeback, Reduces Burden for Third-Party Risk ManagementTailoring Third-Party Risk Management to the Risks That Matter Most
Bolstering Core Service Providers’ Transparency in Community Bank Engagements
WASHINGTON–The Office of the Comptroller of the Currency today continued to empower community banks and reduce their burden with a proposal to tailor third-party risk management to actual risk, and by providing greater clarity regarding supervision and enforcement of core service providers.
The OCC’s proposed guidance would help banks focus their resources on third-party relationships based on the magnitude and likelihood of potential harm actually posed by each relationship, while tailoring risk management to each bank’s size, complexity, and risk profile. It would move away from overly broad, process-driven approaches, make clear that there is no one-size-fits-all approach to third-party risk management, and encourage responsible innovation.
The OCC also provided community banks greater clarity regarding the agency’s risk-based supervision and enforcement of core service providers to help address situations where these banks face challenges with due diligence, ongoing monitoring, and contract terms.
Together, these actions give community banks greater flexibility to manage risk and provide innovative products and services, enhancing their ability to serve customers, support local businesses, and strengthen their communities.
“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,” said Comptroller of the Currency Jonathan V. Gould. “The OCC is proud to turn their vision into action. Today, we are cutting unnecessary regulatory friction, tailoring supervision to actual risk, and strengthening community banks’ ability to manage critical third-party relationships. We are giving these vital institutions more freedom to do what they do best – serve their customers, support local businesses, strengthen their communities, and drive economic growth across America.”
The OCC remains committed to addressing the challenges for community banks and has taken a series of actions to rightsize regulatory burden and tailor supervisory activities so these institutions may grow and continue to meet the needs of the customers and small businesses they serve. These actions include:
- Creating a distinct line of supervision focused on community banks and the issues that affect them most.
- Removing OCC examination activities that were previously required by OCC policy and instead tailoring examination scope and frequency in a manner that is consistent with risk-based supervision.
- Increasing the upper asset range of the community bank supervision portfolio to give them room to grow organically or through acquisition, without facing the increased supervision scrutiny that comes with being a larger bank assigned to other supervision portfolios.
- Updating the OCC’s model risk management guidance to clarify that model risk management should be risk-based, tailored, and commensurate with a bank’s size, complexity, and extent of model use, excluding community banks from unnecessary requirements.
- Simplifying licensing requirements and alleviating unnecessary compliance burdens by expanding community banks’ access to expedited or reduced filing procedures.
- Establishing Community Bank Minimum Bank Secrecy Act and Anti-Money Laundering examination procedures to tailor supervisory activities to community banks’ generally low money laundering/terrorist financing risk levels and eliminating Money Laundering Risk System data collection requirements.
- Reducing complexity by clarifying that the OCC will not use expanded procedures—generally unsuitable to community banks—when examining community banks’ retail nondeposit investment product offerings.
- Eliminating duplicative data collection requirements, further alleviating regulatory reporting burden for community banks.
- Proposing guidance for a simplified Community Reinvestment Act strategic plan process to help community banks better focus their resources on local credit needs and clarify measurable goals and other requirements.
- Issuing a revised compliance guide for the community bank leverage ratio framework as part of its ongoing work to provide regulatory relief for community banks.
- Broadening eligibility for longer exam cycles for the smallest institutions to reduce burden, yielding cost savings and enabling banks to reallocate resources to better serve their customers.
Related Links
- Proposed Third-Party Risk Management Guidance (PDF)
- Joint Statement on Community Banks’ Engagement with Core Service Providers (PDF)
- Community Bank Comeback
Media Contact
Stephanie Collins
(202) 649-6870