44890 Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Notices
1 The FDIC also promotes stability and public
confidence in the nation’s financial system by
insuring deposits and resolving failed insured
depository institutions, leading sound policy
development, evaluating resolution plans of the
largest of institutions, and monitoring and
mitigating systemic risks in the banking sector and
financial system as a whole.
2 The FDIC also has a back-up supervision and
examination role with respect to approximately
2,000 insured depository institutions (pursuant to
sections 8 and 10 of the Federal Deposit Insurance
Act, 12 U.S.C. 1818, 1820) for which the Office of
the Comptroller of the Currency and the Board of
Governors of the Federal Reserve System are the
primary Federal regulators.
Please ensure that your comments are
submitted within the specified comment
period. Comments received after the
close of the comment period will be
marked ‘‘late.’’ EPA is not required to
consider these late comments.
Gautam Srinivasan,
Associate General Counsel.
[FR Doc. 2020–16112 Filed 7–23–20; 8:45 am]
BILLING CODE P
ENVIRONMENTAL PROTECTION
AGENCY
[ER–FRL–9051–9]
Environmental Impact Statements;
Notice of Availability
Responsible Agency: Office of Federal
Activities, General Information 202–
564–5632 or https://www.epa.gov/nepa.
Weekly receipt of Environmental Impact
Statements (EIS)
Filed July 13, 2020, 10 a.m. EST
Through July 20, 2020, 10 a.m. EST
Pursuant to 40 CFR 1506.9.
Notice:
Section 309(a) of the Clean Air Act
requires that EPA make public its
comments on EISs issued by other
Federal agencies. EPA’s comment letters
on EISs are available at: https://
cdxnodengn.epa.gov/cdx-enepa-public/
action/eis/search.
EIS No. 20200146, Draft, USA, MD, Fort
Davison Army Airfield Area
Development Plan, Comment Period
Ends: 09/08/2020, Contact: Fort
Belvoir Directorate of Public Works,
Environmental Division (DPW–ED)
703–806–0020.
EIS No. 20200147, Final Supplement,
NASA, CA, Final Supplemental
Environmental Impact Statement for
Soil Cleanup Activities at Santa
Susana Field Laboratory, Review
Period Ends: 08/24/2020, Contact:
Peter Zorba, SSFL Project Director
202–714–0496.
EIS No. 20200148, Final, USACE, AK,
Pebble Mine, Review Period Ends: 08/
24/2020, Contact: Shane McCoy 907–
753–2715.
Amended Notice:
EIS No. 20200060, Draft, FHWA, VA,
Route 220 Martinsville Southern
Connector, Comment Period Ends: 09/
11/2020, Contact: Mack A Frost 804–
775–3352. Revision to FR Notice
Published 06/19/2020; Extending the
Comment Period from 7/24/2020 to 9/
11/2020.
Dated: July 20, 2020.
Cindy S. Barger,
Director, NEPA Compliance Division, Office
of Federal Activities.
[FR Doc. 2020–16055 Filed 7–23–20; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
RIN 3064–ZA18
Request for Information on Standard
Setting and Voluntary Certification for
Models and Third-Party Providers of
Technology and Other Services
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for
information.
SUMMARY: The FDIC is issuing this
request for information (RFI) as part of
its FDiTech initiative to promote the
efficient and effective adoption of
technology at FDIC-supervised banks
and savings associations (financial
institutions), particularly at community
banks, and to facilitate the supervision
of technology usage at these institutions
without increasing costs or regulatory
burden. The FDIC is committed to
increasing transparency, improving
supervisory and regulatory efficiency,
supporting innovation in banking, and
providing opportunities for public
feedback. This RFI seeks input on
whether a standard-setting and
voluntary-certification program could be
established to support financial
institutions’ efforts to implement
models and manage model risk by
certifying or assessing certain aspects of
the models themselves, and to conduct
due diligence of third-party providers of
technology and other services by
certifying or assessing certain aspects of
the third-party providers’ operations or
condition. The FDIC is especially
interested in information on models and
technology services developed and
provided by financial technology
companies, sometimes referred to as
‘‘fintechs.’’
DATES: Comments must be received by
September 22, 2020.
ADDRESSES: You may submit comments,
identified by RIN 3064–ZA18, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the agency website.
• Email: Comments@fdic.gov. Include
RIN 3064–ZA18 in the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
All comments received must include
the agency name and RIN 3064–ZA18.
Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/—including any personal
information provided—for public
inspection. Paper copies of public
comments may be ordered from the
FDIC Public Information Center, 3501
North Fairfax Drive, Room E–1002,
Arlington, VA 22226 by telephone at
(877) 275–3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
Alexander LePore, Jr., Senior Policy
Analyst, (202) 898–7203, alepore@
fdic.gov.
SUPPLEMENTARY INFORMATION: The FDIC
is an independent Federal agency with
a mission of maintaining stability and
public confidence in the nation’s
financial system, in part by examining
and supervising certain financial
institutions, including for safety and
soundness and consumer protection.1
The FDIC is the primary Federal
banking supervisor for more than 3,000
state-chartered banks and savings
associations that are not members of the
Federal Reserve System, and it conducts
regular examinations of these
supervised institutions.2 Examinations
include an assessment of how a
financial institution manages the risks
presented by its relationships with third
parties.
The FDIC reviews a financial
institution’s management of significant
third-party relationships in the context
of the normal supervisory process. The
FDIC examines the quality and
effectiveness of an institution’s risk
management program as it pertains to
the safety and soundness and consumer
VerDate Sep<11>2014 20:45 Jul 23, 2020 Jkt 250001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\24JYN1.SGM 24JYN1
jbell on DSKJLSW7X2PROD with NOTICES
1 The FDIC also promotes stability and public
confidence in the nation’s financial system by
insuring deposits and resolving failed insured
depository institutions, leading sound policy
development, evaluating resolution plans of the
largest of institutions, and monitoring and
mitigating systemic risks in the banking sector and
financial system as a whole.
2 The FDIC also has a back-up supervision and
examination role with respect to approximately
2,000 insured depository institutions (pursuant to
sections 8 and 10 of the Federal Deposit Insurance
Act, 12 U.S.C. 1818, 1820) for which the Office of
the Comptroller of the Currency and the Board of
Governors of the Federal Reserve System are the
primary Federal regulators.
Please ensure that your comments are
submitted within the specified comment
period. Comments received after the
close of the comment period will be
marked ‘‘late.’’ EPA is not required to
consider these late comments.
Gautam Srinivasan,
Associate General Counsel.
[FR Doc. 2020–16112 Filed 7–23–20; 8:45 am]
BILLING CODE P
ENVIRONMENTAL PROTECTION
AGENCY
[ER–FRL–9051–9]
Environmental Impact Statements;
Notice of Availability
Responsible Agency: Office of Federal
Activities, General Information 202–
564–5632 or https://www.epa.gov/nepa.
Weekly receipt of Environmental Impact
Statements (EIS)
Filed July 13, 2020, 10 a.m. EST
Through July 20, 2020, 10 a.m. EST
Pursuant to 40 CFR 1506.9.
Notice:
Section 309(a) of the Clean Air Act
requires that EPA make public its
comments on EISs issued by other
Federal agencies. EPA’s comment letters
on EISs are available at: https://
cdxnodengn.epa.gov/cdx-enepa-public/
action/eis/search.
EIS No. 20200146, Draft, USA, MD, Fort
Davison Army Airfield Area
Development Plan, Comment Period
Ends: 09/08/2020, Contact: Fort
Belvoir Directorate of Public Works,
Environmental Division (DPW–ED)
703–806–0020.
EIS No. 20200147, Final Supplement,
NASA, CA, Final Supplemental
Environmental Impact Statement for
Soil Cleanup Activities at Santa
Susana Field Laboratory, Review
Period Ends: 08/24/2020, Contact:
Peter Zorba, SSFL Project Director
202–714–0496.
EIS No. 20200148, Final, USACE, AK,
Pebble Mine, Review Period Ends: 08/
24/2020, Contact: Shane McCoy 907–
753–2715.
Amended Notice:
EIS No. 20200060, Draft, FHWA, VA,
Route 220 Martinsville Southern
Connector, Comment Period Ends: 09/
11/2020, Contact: Mack A Frost 804–
775–3352. Revision to FR Notice
Published 06/19/2020; Extending the
Comment Period from 7/24/2020 to 9/
11/2020.
Dated: July 20, 2020.
Cindy S. Barger,
Director, NEPA Compliance Division, Office
of Federal Activities.
[FR Doc. 2020–16055 Filed 7–23–20; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
RIN 3064–ZA18
Request for Information on Standard
Setting and Voluntary Certification for
Models and Third-Party Providers of
Technology and Other Services
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for
information.
SUMMARY: The FDIC is issuing this
request for information (RFI) as part of
its FDiTech initiative to promote the
efficient and effective adoption of
technology at FDIC-supervised banks
and savings associations (financial
institutions), particularly at community
banks, and to facilitate the supervision
of technology usage at these institutions
without increasing costs or regulatory
burden. The FDIC is committed to
increasing transparency, improving
supervisory and regulatory efficiency,
supporting innovation in banking, and
providing opportunities for public
feedback. This RFI seeks input on
whether a standard-setting and
voluntary-certification program could be
established to support financial
institutions’ efforts to implement
models and manage model risk by
certifying or assessing certain aspects of
the models themselves, and to conduct
due diligence of third-party providers of
technology and other services by
certifying or assessing certain aspects of
the third-party providers’ operations or
condition. The FDIC is especially
interested in information on models and
technology services developed and
provided by financial technology
companies, sometimes referred to as
‘‘fintechs.’’
DATES: Comments must be received by
September 22, 2020.
ADDRESSES: You may submit comments,
identified by RIN 3064–ZA18, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the agency website.
• Email: Comments@fdic.gov. Include
RIN 3064–ZA18 in the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7:00 a.m. and
5:00 p.m.
All comments received must include
the agency name and RIN 3064–ZA18.
Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/—including any personal
information provided—for public
inspection. Paper copies of public
comments may be ordered from the
FDIC Public Information Center, 3501
North Fairfax Drive, Room E–1002,
Arlington, VA 22226 by telephone at
(877) 275–3342 or (703) 562–2200.
FOR FURTHER INFORMATION CONTACT:
Alexander LePore, Jr., Senior Policy
Analyst, (202) 898–7203, alepore@
fdic.gov.
SUPPLEMENTARY INFORMATION: The FDIC
is an independent Federal agency with
a mission of maintaining stability and
public confidence in the nation’s
financial system, in part by examining
and supervising certain financial
institutions, including for safety and
soundness and consumer protection.1
The FDIC is the primary Federal
banking supervisor for more than 3,000
state-chartered banks and savings
associations that are not members of the
Federal Reserve System, and it conducts
regular examinations of these
supervised institutions.2 Examinations
include an assessment of how a
financial institution manages the risks
presented by its relationships with third
parties.
The FDIC reviews a financial
institution’s management of significant
third-party relationships in the context
of the normal supervisory process. The
FDIC examines the quality and
effectiveness of an institution’s risk
management program as it pertains to
the safety and soundness and consumer
VerDate Sep<11>2014 20:45 Jul 23, 2020 Jkt 250001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\24JYN1.SGM 24JYN1
jbell on DSKJLSW7X2PROD with NOTICES
44891Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Notices
3 Section 39 of the Federal Deposit Insurance Act
requires the Federal Deposit Insurance Corporation
to establish safety and soundness standards. 12
U.S.C. 1831p–1. These standards are set forth in
part 364 of the FDIC Rules and Regulations. 12 CFR
part 364.
4 See, e.g., Supervisory Guidance on Model Risk
Management, FIL–22–2017 (June 7, 2017), Guidance
for Managing Third-Party Risk, FIL–44–2008 (June
6, 2008), Interagency Guidelines Establishing
Standards for Safety and Soundness, 12 CFR part
364, appendix A, and Interagency Guidelines
Establishing Information Security Standards, 12
CFR part 364, appendix B.
5 For example, financial institutions entering into
a relationship with a third party to employ these
models would also need to comply with section 5
of the Federal Trade Commission Act (15 U.S.C. 45)
and ensure that lending practices that are not
discriminatory in violation of the Equal Credit
Opportunity Act (15 U.S.C. 1691–1691f).
6 See, e.g., Equal Credit Opportunity Act, 15
U.S.C. 1691–1691f; Fair Credit Reporting Act, 15
U.S.C. 1681–1681x; Interagency Statement on the
Use of Alternative Data in Credit Underwriting,
FIL–82–2019 (Dec. 13, 2019); Interagency Fair
Lending Examination Procedures (Aug. 2009);
Policy Statement on Discrimination in Lending, FR
Doc. No. 94–9214 (Apr. 15, 1994); Dodd-Frank Act,
Title X, Subtitle C, Sec. 1036; Pub. L. 111–203 (July
21, 2010).
protection aspects of third-party
arrangements. The FDIC also examines
a financial institution to ensure that the
products, services, and activities
supported by a third party are safe and
sound and comply with applicable laws
and regulations, including those
concerning consumer protection and
civil rights. Reviews of third-party
arrangements are also a critical area
included in examinations of the trust
and information technology functions.
Financial institutions often establish
relationships with third parties to
provide certain functions that financial
institutions do not perform or to meet
short-term needs that they are unable to
fulfill. Therefore, financial institutions
rely on third-party relationships for
many different aspects of their
operations, including credit
management, operational risk
management, valuation, and stress
testing. Management is responsible for
identifying and controlling risks from
activities conducted by or through its
financial institution, whether these risks
arise from internal business activities or
through arrangements with a third
party.3 These risks include those that
arise from reliance on models,
technologies, and other products or
services provided by third parties.
Model guidelines 4 describe risk
management principles relating to
financial institutions employing models,
which are described as quantitative
methods, systems, or approaches that
apply statistical, economic, financial, or
mathematical theories, techniques, and
assumptions to process input data into
quantitative estimates.5 In general,
model risk management should be
commensurate with the financial
institution’s overall use of models, the
complexity and materiality of its
models, and the size and complexity of
the financial institution’s operations.
Financial institutions also should be
mindful of consumer protection risks
when using third-party models or
technologies, to ensure they are
developed and operated in compliance
with applicable consumer protection
laws and regulations, which may
include, for example, fair lending laws,
privacy laws, and prohibitions against
unfair, deceptive, or abusive acts or
practices.6
As the financial services industry
evolves, more financial institutions are
using third-party models and
technologies for functions that either are
new or had been performed in-house in
the past. The FDIC recognizes that the
use of such models and technologies
can assist the financial institution in
providing greater benefits to consumers
and increasing financial inclusion. The
use of third-party models and
technologies may also give the financial
institution access to greater expertise or
efficiency in providing a particular
product or service at lower cost.
Many financial institutions,
particularly community banks, have
indicated to the FDIC that sometimes
the costs and other resources associated
with deploying models or technologies
from third parties can be prohibitive.
Vendors offer increasingly complex
models with a range of features, and as
a result, institutions may find it
challenging to validate and assess such
models. For example, an institution
might conclude that it must hire new
internal staff, retain consultants, or
impose contractual obligations on the
third party in order to conduct the
model validation. In addition, for third-
party outsourcing arrangements that
support models, institutions conduct
risk reviews on third-party providers.
These risk reviews involve financial,
operations, contract, and insurance
assessments, along with assessment of
other aspects of the outsourcing
arrangements. Representatives of
financial institutions have expressed
concerns to the FDIC that the costs
associated with the financial
institutions’ review of both models and
third-party providers of models can
create barriers to entry, particularly in
the community banking market, by
limiting the institutions’ ability to
effectively and timely on-board third
parties and deploy new and innovative
models.
The FDIC recognizes the important
role that technological innovations can
play in transforming the business of
banking and enabling regulators to
supervise more efficiently, thereby
reducing regulatory burden while
maintaining consumer protection and
safety and soundness standards.
Therefore, the FDIC is exploring
opportunities to assist financial
institutions in effectively complying
with laws and regulations regarding
management of third-party risks
concerning the use of models, such as
credit underwriting models. Among
other things, the FDIC is considering the
value of standards for assessing models.
The development of relevant standards,
along with the development and
application of a voluntary certification
process to ensure that models conform
to those standards, could potentially
allow for more financial institutions—
particularly community banks—to
engage with third parties, including
fintechs; permit FDIC supervision
resources to be used more efficiently
and effectively; and reduce costs of
doing business for financial institutions
and providers of models.
The FDIC also is considering whether
a voluntary certification or assessment
program could support financial
institutions’ due diligence of third-party
providers of a range of technology and
other services by certifying or assessing
certain aspects of the third-party
providers’ operations or condition. The
FDIC is interested in whether there are
unique elements and challenges
associated with financial institutions’
due diligence of third-party providers of
technology and other services that
would benefit from a voluntary
certification or assessment program
applicable to such providers. The FDIC
is primarily interested in due diligence
elements associated with third-party
providers of technology and other
services that support a financial
institution’s financial and banking
activities, such as deposit, lending, and
payment functions. The FDIC also is
interested in comments regarding due
diligence for other types of third-party
providers, such as those providers that
support the financial institution’s
corporate activities, including payroll
and human resources. The FDIC also
requests comments on what alternative
steps the FDIC could pursue, other than
a voluntary certification or assessment
program, to support financial
institutions’ efforts to assess risk
efficiently and effectively when
contemplating new or monitoring
existing relationships with third-party
providers.
As part of this Request for
Information, the FDIC is not considering
substantive revisions to its existing
VerDate Sep<11>2014 20:45 Jul 23, 2020 Jkt 250001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\24JYN1.SGM 24JYN1
jbell on DSKJLSW7X2PROD with NOTICES
3 Section 39 of the Federal Deposit Insurance Act
requires the Federal Deposit Insurance Corporation
to establish safety and soundness standards. 12
U.S.C. 1831p–1. These standards are set forth in
part 364 of the FDIC Rules and Regulations. 12 CFR
part 364.
4 See, e.g., Supervisory Guidance on Model Risk
Management, FIL–22–2017 (June 7, 2017), Guidance
for Managing Third-Party Risk, FIL–44–2008 (June
6, 2008), Interagency Guidelines Establishing
Standards for Safety and Soundness, 12 CFR part
364, appendix A, and Interagency Guidelines
Establishing Information Security Standards, 12
CFR part 364, appendix B.
5 For example, financial institutions entering into
a relationship with a third party to employ these
models would also need to comply with section 5
of the Federal Trade Commission Act (15 U.S.C. 45)
and ensure that lending practices that are not
discriminatory in violation of the Equal Credit
Opportunity Act (15 U.S.C. 1691–1691f).
6 See, e.g., Equal Credit Opportunity Act, 15
U.S.C. 1691–1691f; Fair Credit Reporting Act, 15
U.S.C. 1681–1681x; Interagency Statement on the
Use of Alternative Data in Credit Underwriting,
FIL–82–2019 (Dec. 13, 2019); Interagency Fair
Lending Examination Procedures (Aug. 2009);
Policy Statement on Discrimination in Lending, FR
Doc. No. 94–9214 (Apr. 15, 1994); Dodd-Frank Act,
Title X, Subtitle C, Sec. 1036; Pub. L. 111–203 (July
21, 2010).
protection aspects of third-party
arrangements. The FDIC also examines
a financial institution to ensure that the
products, services, and activities
supported by a third party are safe and
sound and comply with applicable laws
and regulations, including those
concerning consumer protection and
civil rights. Reviews of third-party
arrangements are also a critical area
included in examinations of the trust
and information technology functions.
Financial institutions often establish
relationships with third parties to
provide certain functions that financial
institutions do not perform or to meet
short-term needs that they are unable to
fulfill. Therefore, financial institutions
rely on third-party relationships for
many different aspects of their
operations, including credit
management, operational risk
management, valuation, and stress
testing. Management is responsible for
identifying and controlling risks from
activities conducted by or through its
financial institution, whether these risks
arise from internal business activities or
through arrangements with a third
party.3 These risks include those that
arise from reliance on models,
technologies, and other products or
services provided by third parties.
Model guidelines 4 describe risk
management principles relating to
financial institutions employing models,
which are described as quantitative
methods, systems, or approaches that
apply statistical, economic, financial, or
mathematical theories, techniques, and
assumptions to process input data into
quantitative estimates.5 In general,
model risk management should be
commensurate with the financial
institution’s overall use of models, the
complexity and materiality of its
models, and the size and complexity of
the financial institution’s operations.
Financial institutions also should be
mindful of consumer protection risks
when using third-party models or
technologies, to ensure they are
developed and operated in compliance
with applicable consumer protection
laws and regulations, which may
include, for example, fair lending laws,
privacy laws, and prohibitions against
unfair, deceptive, or abusive acts or
practices.6
As the financial services industry
evolves, more financial institutions are
using third-party models and
technologies for functions that either are
new or had been performed in-house in
the past. The FDIC recognizes that the
use of such models and technologies
can assist the financial institution in
providing greater benefits to consumers
and increasing financial inclusion. The
use of third-party models and
technologies may also give the financial
institution access to greater expertise or
efficiency in providing a particular
product or service at lower cost.
Many financial institutions,
particularly community banks, have
indicated to the FDIC that sometimes
the costs and other resources associated
with deploying models or technologies
from third parties can be prohibitive.
Vendors offer increasingly complex
models with a range of features, and as
a result, institutions may find it
challenging to validate and assess such
models. For example, an institution
might conclude that it must hire new
internal staff, retain consultants, or
impose contractual obligations on the
third party in order to conduct the
model validation. In addition, for third-
party outsourcing arrangements that
support models, institutions conduct
risk reviews on third-party providers.
These risk reviews involve financial,
operations, contract, and insurance
assessments, along with assessment of
other aspects of the outsourcing
arrangements. Representatives of
financial institutions have expressed
concerns to the FDIC that the costs
associated with the financial
institutions’ review of both models and
third-party providers of models can
create barriers to entry, particularly in
the community banking market, by
limiting the institutions’ ability to
effectively and timely on-board third
parties and deploy new and innovative
models.
The FDIC recognizes the important
role that technological innovations can
play in transforming the business of
banking and enabling regulators to
supervise more efficiently, thereby
reducing regulatory burden while
maintaining consumer protection and
safety and soundness standards.
Therefore, the FDIC is exploring
opportunities to assist financial
institutions in effectively complying
with laws and regulations regarding
management of third-party risks
concerning the use of models, such as
credit underwriting models. Among
other things, the FDIC is considering the
value of standards for assessing models.
The development of relevant standards,
along with the development and
application of a voluntary certification
process to ensure that models conform
to those standards, could potentially
allow for more financial institutions—
particularly community banks—to
engage with third parties, including
fintechs; permit FDIC supervision
resources to be used more efficiently
and effectively; and reduce costs of
doing business for financial institutions
and providers of models.
The FDIC also is considering whether
a voluntary certification or assessment
program could support financial
institutions’ due diligence of third-party
providers of a range of technology and
other services by certifying or assessing
certain aspects of the third-party
providers’ operations or condition. The
FDIC is interested in whether there are
unique elements and challenges
associated with financial institutions’
due diligence of third-party providers of
technology and other services that
would benefit from a voluntary
certification or assessment program
applicable to such providers. The FDIC
is primarily interested in due diligence
elements associated with third-party
providers of technology and other
services that support a financial
institution’s financial and banking
activities, such as deposit, lending, and
payment functions. The FDIC also is
interested in comments regarding due
diligence for other types of third-party
providers, such as those providers that
support the financial institution’s
corporate activities, including payroll
and human resources. The FDIC also
requests comments on what alternative
steps the FDIC could pursue, other than
a voluntary certification or assessment
program, to support financial
institutions’ efforts to assess risk
efficiently and effectively when
contemplating new or monitoring
existing relationships with third-party
providers.
As part of this Request for
Information, the FDIC is not considering
substantive revisions to its existing
VerDate Sep<11>2014 20:45 Jul 23, 2020 Jkt 250001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\24JYN1.SGM 24JYN1
jbell on DSKJLSW7X2PROD with NOTICES