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On September 11, 2026, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (the Board), and the Federal Deposit Insurance Corporation (the FDIC) issued a joint statement providing clarity on their risk-based supervision of certain services provided by core providers to community banking organizations. The statement addresses how the three agencies will supervise core provider services and the factors they will consider when making supervisory and enforcement decisions. It clarifies the extent to which the agencies will take specific aspects of community banking organisations' engagement with core providers into consideration when determining the level of supervisory oversight. The statement also outlines the agencies' supervisory and enforcement authorities where a core provider engages in or causes a community banking organisation to engage in unsafe or unsound practices or violations of laws or regulations. The statement applies specifically to community banks supervised by the OCC, the Board, and the FDIC. This includes national banks, federal savings associations, and federal branches and agencies of foreign banking organisations. The guidance addresses select aspects of how community banking organisations engage with core providers and establishes a framework for assessing risk based on the nature and scope of services provided. Community banks and their core service providers should review the joint statement to understand the supervisory expectations and risk management considerations the agencies will apply. For further information, community banks may contact Graham Bannon, Counsel at the OCC's Chief Counsel's Office at (202) 649-5490. REFERENCES: Office of the Comptroller of the Currency. (2026, September 11). Interagency Statement: Risk-Based Supervision of Certain Services Provided by Core Providers to Community Banking Organizations. OCC Bulletin 2026-47. https://www.occ.gov/news-issuances/bulletins/2026/bulletin-2026-47.html

On September 11, 2026, the US Office of the Comptroller of the Currency (OCC), US Federal Deposit Insurance Corporation (FDIC) and US Federal Reserve Board (FRB) issued a joint statement to provide clarity on their risk-based supervision of certain services provided by core providers to community banks. According to a news release , the joint statement is designed to address select aspects of how community banks engage with core providers, the extent to which the regulators will take these aspects into consideration when determining supervisory oversight and the regulators' enforcement authorities when a core provider engages in or causes unsafe or unsound practices. The joint statement outlines factors the regulators will consider when making supervisory allocation decisions for core providers, including: Transparency: The core provider's willingness to provide timely due diligence information, use and transparency of service level agreements, timely disclosure of operational issues and security incidents and clear billing practices. Contracts: Business practices and contract terms that make it difficult for community banks to manage relationships according to their needs, such as opaque pricing, extensive retroactive billing, unsupported de-conversion fees and excessive limitations on integrations with alternative providers. Technology: The core provider's technology investments and capabilities, including the frequency and severity of security incidents, management of end-of-life assets and demonstrated operational resilience. Additionally, the joint statement clarifies that the regulators may bring enforcement actions against core providers, noting that they may have a reasonable basis to classify certain core providers as “institution-affiliated parties” (IAPs) under the Federal Deposit Insurance Act (FDIA) due to their integral role in the business of banking.

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Office of the Comptroller of the Currency Issues Interagency Statement on Risk-Based Supervision of Core Providers

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US Federal Regulators Publish Joint Statement on Risk-Based Supervision of Community Bank Core Service Providers