HomeLegal DirectoryInteragency AI/ML Risk Mgmt (OCC/Fed/FDIC)

In effect Limited protection

Interagency Joint Statement — Risk Management of AI/ML in Banking

United States · 86 Fed. Reg. 16837; SR 11-7; OCC Bulletin 2011-12

Banking regulators issued a joint request for information setting their supervisory expectations for banks using AI and machine learning — covering model risk, fair lending, third-party AI vendors, and consumer-protection compliance. The 2011 model-risk-management guidance (SR 11-7) governs AI underwriting models.

Technical detail

Interagency Request for Information and Comment on Financial Institutions' Use of AI/ML, 86 Fed. Reg. 16837 (Mar. 31, 2021). The OCC, FDIC, FRB, CFPB, and NCUA jointly outlined that AI/ML models are governed by existing Model Risk Management guidance (SR 11-7 / OCC Bulletin 2011-12), fair-lending laws, and third-party risk management standards. OCC's Comptroller's Handbook updates incorporate AI/ML examination expectations.

Who is protected: Bank customers and credit applicants subject to AI/ML decisions

Who must comply: National banks, federal savings associations, state member and nonmember banks, credit unions, and their third-party AI vendors

Key facts

JurisdictionUnited States
LevelFederal
StatusIn effect
Protection strengthLimited protection
Effective date2021-03-31
Enacted2021-03-31
Citation86 Fed. Reg. 16837; SR 11-7; OCC Bulletin 2011-12
Enforced byOCC; Federal Reserve; FDIC; NCUA; CFPB (overlapping)
Private right of actionNo — agency enforcement only
PenaltiesMatters Requiring Attention (MRAs); enforcement orders; civil money penalties under 12 U.S.C. § 1818
Topicshousing and credit decisions · automated decision-making · consumer protection · AI disclosure and transparency
Last verified2026-06-17
Official sourceInteragency RFI on Financial Institutions' Use of AI (86 FR 16837) ↗

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