Agencies Revise the Interagency Model Risk Management Guidance

Summary:

On April 17, 2026, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued revised model risk management guidance and rescinded existing model risk management guidance.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions. The guidance is expected to be most relevant to banking organizations with over $30 billion in total assets.

Highlights:

• Use of models within the banking and financial services industries continues to grow in complexity and scope. Advances in technology along with increased competition have driven banking organizations to leverage innovative approaches to improve efficiencies, better mitigate risks, and help maximize profits.
• The FDIC is issuing this revised model risk management guidance to clarify model risk management principles, and to set forth a risk-based approach to model risk management, tailored to a banking organization's model risk profile and the size and complexity of its operations.
• The guidance generally does not apply to models used by banking organizations with total assets of $30 billion or less, to the extent such institutions do not have significant exposure to model risk. Such models are typically subject to internal risk management and governance practices appropriate for the size and risk profile of these banking organizations.
• This guidance does not set forth enforceable standards or prescriptive requirements; accordingly, non-compliance with this guidance alone will not result in supervisory criticism against a banking organization.
• With the issuance of this revised guidance, the FDIC is rescinding existing model risk management guidance (FIL-22-2017 and FIL-27-2021).